  The dielectric properties of alpha-MgH2 are investigated in the photon energy
range between 1 and 6.5 eV. For this purpose, a novel sample configuration and
experimental setup are developed that allow both optical transmission and
ellipsometric measurements of a transparent thin film in equilibrium with
hydrogen. We show that alpha-MgH2 is a transparent, colour neutral insulator
with a band gap of 5.6 +/- 0.1 eV. It has an intrinsic transparency of about
80% over the whole visible spectrum. The dielectric function found in this work
confirms very recent band structure calculations using the GW approximation by
Alford and Chou [J.A. Alford and M.Y. Chou (unpublished)]. As Pd is used as a
cap layer we report also the optical properties of PdHx thin films.
