  Measurement-induced nonclassical effects in a two-mode interferometer are
investigated theoretically using numerical simulations and analytical results.
We demonstrate that for certain parameters measurements within the
interferometer lead to the occurrence of two-mode squeezing. The results
strongly depend on the detection probability, the phase inside the
interferometer, and the choice of the input states. The appropriate parameters
for maximized squeezing are obtained. We analyze the influence of losses and
confirm that the predicted effects are within reach of current experimental
techniques.
