A two-dimensional (2-D) finite-difference time-domain (FDTD) code for the study of nonlinear optical phenomena, in which both the slowly varying and the rapidly varying components of the electromagnetic fields are considered, has been developed. The algorithm solves vectorial Maxwell's equations for all field components and uses the nonlinear constitutive relation in matrix form as the equations required to describe the nonlinear system. The stability of the code is discussed and its effectiveness is demonstrated through the simulations of self-phase modulation (SPM) and second-harmonic generation (SHG). The authors also show that the combination of nonlinear effects with PCs can result in a significant improvement in device size and integrability, using the example of a Mach-Zehnder interferometer (MZI).
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