We suggest a quantitatively correct procedure for reducing the spatial degrees of freedom of the space-dependent rate equations of a multimode laser that describe the dynamics of the population inversion of the active medium and the mode intensities of the standing waves in the laser cavity. The key idea of that reduction is to take advantage of the small value of the parameter that defines the ratio between the population inversion decay rate and the cavity decay rate. We generalize the reduction procedure for the case of an intracavity frequency doubled laser. Frequency conversion performed by an optically nonlinear crystal placed inside the laser cavity may cause a pronounced instability in the laser performance, leading to chaotic oscillations of the output intensity. Based on the reduced equations, we analyze the dynamical properties of the system as well as the problem of stabilizing the steady state. The numerical analysis is performed considering the specific system of a Nd:YAG (neodymium-doped yttrium aluminum garnet) laser with an intracavity KTP (potassium titanyl phosphate) crystal.