The Point Spread Function (PSF) indirectly encodes the wavefront aberrations of an optical system and therefore is a metric of the system performance. Analysis of the PSF properties is useful in the case of diffractive optics where the wavefront emerging from the exit pupil is not necessarily continuous and consequently not well represented by traditional wavefront error descriptors such as Zernike polynomials. The discontinuities in the wavefront from diffractive optics occur in cases where step heights in the element are not multiples of the illumination wavelength. Examples include binary or N-step structures, multifocal elements where two or more foci are intentionally created or cases where other wavelengths besides the design wavelength are used. Here, a technique for expanding the electric field amplitude of the PSF into a series of orthogonal functions is explored. The expansion coefficients provide insight into the diffraction efficiency and aberration content of diffractive optical elements. Furthermore, this technique is more broadly applicable to elements with a finite number of diffractive zones, as well as decentered patterns.

A generalization of multigroup energy condensation theory has been developed. The new method generates a solution within the few-group framework which exhibits the energy spectrum characteristic of a many-group transport solution, without the computational time usually associated with such solutions. This is accomplished by expanding the energy dependence of the angular flux in a set of general orthogonal functions. The expansion leads to a set of equations for the angular flux moments in the few-group framework. The 0th moment generates the standard few-group equation while the higher moment equations generate the detailed spectral resolution within the few-group structure. It is shown that by carefully choosing the orthogonal function set (e.g., Legendre polynomials), the higher moment equations are only coupled to the 0th-order equation and not to each other. The decoupling makes the new method highly competitive with the standard few-group method since the computation time associated with determining the higher moments become negligible as a result of the decoupling. The method is verified in several 1-D benchmark problems typical of BWR configurations with mild to high heterogeneity.

Obtaining the distribution of the profit and loss (PL) of a portfolio is a key problem in market risk measurement. However, existing methods, such as those based on the Normal distribution, and historical simulation methods, which use empirical distribution of risk factors, face difficulties in dealing with at least one of the following three problems: describing the distributional properties of risk factors appropriately (description problem); deriving distributions of risk factors with time horizon longer than one day (time aggregation problem); and deriving the distribution of the PL given the distributional properties of the risk factors (risk aggregation problem). Here, we show that expansion methods can provide reasonable solutions to all three problems. Expansion methods approximate a probability density function by a sum of orthogonal polynomials multiplied by an associated weight function. One of the most important advantages of expansion methods is that they only require moments of the target distribution up to some order to obtain an approximation. Therefore they have the potential to be applied in a wide range of situations, including in attempts to solve the three problems listed above. On the other hand, it is also known that expansions lack robustness: they often exhibit unignorable negative density and their approximation quality can be extremely poor. This limits applications of expansion methods in existing studies. In this thesis, we firstly develop techniques to provide robustness, with which expansion methods result in a practical approximation quality in a wider range of examples than investigated to date. Specifically, we investigate three techniques: standardisation, use of Laguerre expansion and optimisation. Standardisation applies expansion methods to a variable which is transformed so that its first and second moments are the same as those of the weight function. Use of Laguerre expansions applies those expansions to a risk factor so that heavy tails can be captured better. Optimisation considers expansions with coefficients of polynomials optimised so that the difference between the approximation and the target distribution is minimised with respect to mean integrated squared error. We show, by numerical examples using data sets of stock index returns and log differences of implied volatility, and GARCH models, that expansions with our techniques are more robust than conventional expansion methods. As such, marginal distributions of risk factors can be approximated by expansion methods. This solves a part of the description problem: the information on the marginal distributions of risk factors can be summarised by their moments. Then we show that the dependence structure among risk factors can be summarised in terms of their cross-moments. This solves the other part of the description problem. We also use the fact that moments of risk factors can be aggregated using their moments and cross-moments, to show that expansion methods can be applied to both the time and risk aggregation problems. Furthermore, we introduce expansion methods for multivariate distributions, which can also be used to approximate conditional expectations and copula densities by rational functions.

Short-distance digital communication links, between chips on a circuit board, or between different circuit boards for example, have traditionally been built by using electrical interconnects - metallic tracks and wires. Recent technological advances have resulted in improvements in the speed of information processing, but have left electrical interconnects intact, thus creating a serious communication problem. Free-space optical interconnects, made up of arrays of vertical-cavity surface-emitting lasers, microlenses, and photodetectors, could be used to solve this problem. If free-space optical interconnects are to successfully replace electrical interconnects, they have to be able to support large rates of information transfer with high channel densities. The biggest obstacle in the way of reaching these requirements is laser beam diffraction. There are three approaches commonly used to model the effects of laser beam diffraction in optical interconnects: one could pursue the path of solving the diffraction integral directly, one could apply stronger approximations with some loss of accuracy of the results, or one could cleverly reinterpret the diffraction problem altogether. None of the representatives of the three categories of existing solutions qualified for our purposes. The main contribution of this dissertation consist of, first, formulating the mode expansion method, and, second, showing that it outperforms all other methods previously used for modelling diffraction in optical interconnects. The mode expansion method allows us to obtain the optical field produced by the diffraction of arbitrary laser beams at empty apertures, phase-shifting optical elements, or any combinations thereof, regardless of the size, shape, position, or any other parameters either of the incident optical field or the observation plane. The mode expansion method enables us to perform all this without any reference or use of the traditional Huygens-Kirchhoff-Fresnel diffraction integrals. When using the mode expansion method, one replaces the incident optical field and the diffracting optical element by an effective beam, possibly containing higher-order transverse modes, so that the ultimate effects of diffraction are equivalently expressed through the complex-valued modal weights. By using the mode expansion method, one represents both the incident and the resultant optical fields in terms of an orthogonal set of functions, and finds the unknown parameters from the condition that the two fields have to be matched at each surface on their propagation paths. Even though essentially a numerical process, the mode expansion method can produce very accurate effective representations of the diffraction fields quickly and efficiently, usually by using no more than about a dozen expanding modes. The second tier of contributions contained in this dissertation is on the subject of the analysis and design of microchannel free-space optical interconnects. In addition to the proper characterisation of the design model, we have formulated several optical interconnect performance parameters, most notably the signal-to-noise ratio, optical carrier-to-noise ratio, and the space-bandwidth product, in a thorough and insightful way that has not been published previously. The proper calculation of those performance parameters, made possible by the mode expansion method, was then performed by using experimentally-measured fields of the incident vertical-cavity surface-emitting laser beams. After illustrating the importance of the proper way of modelling diffraction in optical interconnects, we have shown how to improve the optical interconnect performance by changing either the interconnect optical design, or by careful selection of the design parameter values. We have also suggested a change from the usual 'square' to a novel 'hexagonal' packing of the optical interconnect channels, in order to alleviate the negative diffraction effects. Finally, the optical interconnect tolerance to lateral misalignment, in the presence of multimodal incident laser beams was studied for the first time, and it was shown to be acceptable only as long as most of the incident optical power is emitted in the fundamental Gaussian mode.

Short-distance digital communication links, between chips on a circuit board, or between different circuit boards for example, have traditionally been built by using electrical interconnects -- metallic tracks and wires. Recent technological advances have resulted in improvements in the speed of information processing, but have left electrical interconnects intact, thus creating a serious communication problem. Free-space optical interconnects, made up of arrays of vertical-cavity surface-emitting lasers, microlenses, and photodetectors, could be used to solve this problem. If free-space optical interconnects are to successfully replace electrical interconnects, they have to be able to support large rates of information transfer with high channel densities. The biggest obstacle in the way of reaching these requirements is laser beam diffraction. There are three approaches commonly used to model the effects of laser beam diffraction in optical interconnects: one could pursue the path of solving the diffraction integral directly, one could apply stronger approximations with some loss of accuracy of the results, or one could cleverly reinterpret the diffraction problem altogether. None of the representatives of the three categories of existing solutions qualified for our purposes. The main contribution of this dissertation consist of, first, formulating the mode expansion method, and, second, showing that it outperforms all other methods previously used for modelling diffraction in optical interconnects. The mode expansion method allows us to obtain the optical field produced by the diffraction of arbitrary laser beams at empty apertures, phase-shifting optical elements, or any combinations thereof, regardless of the size, shape, position, or any other parameters either of the incident optical field or the observation plane. The mode expansion method enables us to perform all this without any reference or use of the traditional Huygens-Kirchhoff-Fresnel diffraction integrals. When using the mode expansion method, one replaces the incident optical field and the diffracting optical element by an effective beam, possibly containing higher-order transverse modes, so that the ultimate effects of diffraction are equivalently expressed through the complex-valued modal weights. By using the mode expansion method, one represents both the incident and the resultant optical fields in terms of an orthogonal set of functions, and finds the unknown parameters from the condition that the two fields have to be matched at each surface on their propagation paths. Even though essentially a numerical process, the mode expansion method can produce very accurate effective representations of the diffraction fields quickly and efficiently, usually by using no more than about a dozen expanding modes. The second tier of contributions contained in this dissertation is on the subject of the analysis and design of microchannel free-space optical interconnects. In addition to the proper characterisation of the design model, we have formulated several optical interconnect performance parameters, most notably the signal-to-noise ratio, optical carrier-to-noise ratio, and the space-bandwidth product, in a thorough and insightful way that has not been published previously. The proper calculation of those performance parameters, made possible by the mode expansion method, was then performed by using experimentally-measured fields of the incident vertical-cavity surface-emitting laser beams. After illustrating the importance of the proper way of modelling diffraction in optical interconnects, we have shown how to improve the optical interconnect performance by changing either the interconnect optical design, or by careful selection of the design parameter values. We have also suggested a change from the usual `square' to a novel `hexagonal' packing of the optical interconnect channels, in order to alleviate the negative diffraction effects. Finally, the optical interconnect tolerance to lateral misalignment, in the presence of multimodal incident laser beams was studied for the first time, and it was shown to be acceptable only as long as most of the incident optical power is emitted in the fundamental Gaussian mode.

Short-distance digital communication links, between chips on a circuit board, or between different circuit boards for example, have traditionally been built by using electrical interconnects -- metallic tracks and wires. Recent technological advances have resulted in improvements in the speed of information processing, but have left electrical interconnects intact, thus creating a serious communication problem. Free-space optical interconnects, made up of arrays of vertical-cavity surface-emitting lasers, microlenses, and photodetectors, could be used to solve this problem. If free-space optical interconnects are to successfully replace electrical interconnects, they have to be able to support large rates of information transfer with high channel densities. The biggest obstacle in the way of reaching these requirements is laser beam diffraction. There are three approaches commonly used to model the effects of laser beam diffraction in optical interconnects: one could pursue the path of solving the diffraction integral directly, one could apply stronger approximations with some loss of accuracy of the results, or one could cleverly reinterpret the diffraction problem altogether. None of the representatives of the three categories of existing solutions qualified for our purposes. The main contribution of this dissertation consist of, first, formulating the mode expansion method, and, second, showing that it outperforms all other methods previously used for modelling diffraction in optical interconnects. The mode expansion method allows us to obtain the optical field produced by the diffraction of arbitrary laser beams at empty apertures, phase-shifting optical elements, or any combinations thereof, regardless of the size, shape, position, or any other parameters either of the incident optical field or the observation plane. The mode expansion method enables us to perform all this without any reference or use of the traditional Huygens-Kirchhoff-Fresnel diffraction integrals. When using the mode expansion method, one replaces the incident optical field and the diffracting optical element by an effective beam, possibly containing higher-order transverse modes, so that the ultimate effects of diffraction are equivalently expressed through the complex-valued modal weights. By using the mode expansion method, one represents both the incident and the resultant optical fields in terms of an orthogonal set of functions, and finds the unknown parameters from the condition that the two fields have to be matched at each surface on their propagation paths. Even though essentially a numerical process, the mode expansion method can produce very accurate effective representations of the diffraction fields quickly and efficiently, usually by using no more than about a dozen expanding modes. The second tier of contributions contained in this dissertation is on the subject of the analysis and design of microchannel free-space optical interconnects. In addition to the proper characterisation of the design model, we have formulated several optical interconnect performance parameters, most notably the signal-to-noise ratio, optical carrier-to-noise ratio, and the space-bandwidth product, in a thorough and insightful way that has not been published previously. The proper calculation of those performance parameters, made possible by the mode expansion method, was then performed by using experimentally-measured fields of the incident vertical-cavity surface-emitting laser beams. After illustrating the importance of the proper way of modelling diffraction in optical interconnects, we have shown how to improve the optical interconnect performance by changing either the interconnect optical design, or by careful selection of the design parameter values. We have also suggested a change from the usual `square' to a novel `hexagonal' packing of the optical interconnect channels, in order to alleviate the negative diffraction effects. Finally, the optical interconnect tolerance to lateral misalignment, in the presence of multimodal incident laser beams was studied for the first time, and it was shown to be acceptable only as long as most of the incident optical power is emitted in the fundamental Gaussian mode.