We report on numerical simulations of two-wave mixing of Gaussian beams in photorefractive materials. By using a model that takes the lateral intensity distribution of the two beams into account we demonstrate that the gain and the time response of Gaussian beams differ considerably from plane wave theory. We show that the gain and its time response can be interpreted in terms of an apparent interaction length and a spatially varying time constant. As an example, we apply numerical simulations in the framework of a two-dimensional model to analyse experimental results on two-wave mixing of focused Gaussian beams in photorefractive KNbO3 planar waveguides.