Abstract
The master equation for the density operator of a system in a lossy cavity, which is coupled to a squeezed bath, is generalized so as to include the effects of an enhanced loss through a mirror of finite transmittivity. As compared to the standard master equation, which is valid for a nearly-perfect cavity, the generalized master equation is found to contain additional terms that account for an effective squeezed-light mixing at the nonideal mirror and for the interplay of the photon loss and the interaction within the cavity. As an example, the new master equation is used to study the influence of the enhanced losses on the photon statistics of a localized degenerate parametric oscillator. It is found that considerable changes in the photon distribution can occur as soon as the quality of the mirror becomes less than perfect.
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