The Volterra model that was developed of the single-mode laser-diode is used to analyze the specific effects of the various laser-diode parameters on the diode linear characteristics described by its first-order Volterra kernel. This analysis lends insight of the single-mode laser-diode model and also enables one to determine optimum parameter values for desired operating characteristics and also any required feedback for a desired frequency response. First, the manner by which the d-c injection current affects the diode gain and frequency response is discussed. This study additionally indicates that there are coupled kinetic and potential energy processes which just exist in a region about threshold. A careful study of this region could thus result in a better understanding of the threshold electron-photon dynamics involved. The effect of deviations of the laser-diode parameters from their normal values on the diode operating characteristics is then analyzed. This analysis is especially useful for the optimization of the laser-diode linear operation to minimize its sensitivity to parameter changes. Further, by combining this result with the temperature sensitivity of the various parameter values, one can analyze the temperature sensitivity of the diode linear operating characteristics. With this, a laser-diode can be designed in which the sensitivity of its operating characteristics to temperature variations is minimized. © 2009 Elsevier B.V. All rights reserved.