  Using the plane wave pseudopotential method we performed density functional
theory calculations on the stability of steps and self-diffusion processes on
Ag(100). Our calculated step formation energies show that the {111}-faceted
step is more stable than the {110}-faceted step. In accordance with
experimental observations we find that the equilibrium island shape should be
octagonal very close to a square with predominately {111}-faceted steps. For
the (100) surface of fcc metals atomic migration proceeds by a hopping or an
exchange process. For Ag(100) we find that adatoms diffuse across flat surfaces
preferentially by hopping. Adatoms approaching the close-packed {111}-faceted
step edges descend from the upper terrace to the lower level by an atomic
exchange with an energy barrier almost identical to the diffusion barrier on
flat surface regions. Thus, within our numerical accuracy (approx +- 0.05 eV)
there is no additional step-edge barrier to descent. This provides a natural
explanation for the experimental observations of the smooth two-dimensional
growth in homoepitaxy of Ag(100). Inspection of experimental results of other
fcc crystal surfaces indicates that our result holds quite generally.
