  Quantum state diffusion (QSD) as a tool to solve quantum-optical master
equations by stochastic simulation can be made several orders of magnitude more
efficient if states in Hilbert space are represented in a moving basis of
excited coherent states. The large savings in computer memory and time are due
to the localization property of the QSD equation. We show how the method can be
used to compute spectra and give an application to second harmonic generation.
