An effective-medium approach is used to derive a set of coupled-mode equations describing quadratic parametric interactions in a one-dimensional inhomogeneous medium of finite length. The solutions for both copropagating and counterpropagating interactions are used to study the quantum-mechanical process of spontaneous parametric down-conversion (SPDC). An example is studied in which the inhomogeneous medium is a photonic crystal. The effect that device geometry has on both the efficiency and bandwidth of SPDC is explored. With appropriate design, we find that it is possible not only to enhance the efficiency of SPDC, but also to generate broadband copropagating and narrowband counterpropagating down-converted light. A setup is proposed with the potential to act as a source of entangled photon pairs.