Parametric downconversion (PDC) is a technique of ubiquitous experimental significance in the production of non-classical, photon-number correlated twin beams. Standard theory of PDC as a two-mode squeezing process predicts and homodyne measurements observe a thermal photon number distribution per beam. Recent experiments have obtained conflicting distributions. In this paper, we explain the observation by an a-priori theoretical model solely based on directly accessible physical quantities. We compare our predictions with experimental data and find excellent agreement.
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