  Ab initio wavefunction based methods are applied to the study of electron
correlation effects on the band structure of oxide systems. We choose MgO as a
prototype closed-shell ionic oxide. Our analysis is based on a local
Hamiltonian approach and performed on finite fragments cut from the infinite
solid. Localized Wannier functions and embedding potentials are obtained from
prior periodic Hartree-Fock (HF) calculations. We investigate the role of
various electron correlation effects in reducing the HF band gap and modifying
the band widths. On-site and nearest-neighbor charge relaxation as well as
long-range polarization effects are calculated. Whereas correlation effects are
essential for computing accurate band gaps, we found that they produce smaller
changes on the HF band widths, at least for this material. Surprisingly, a
broadening effect is obtained for the O 2p valence bands. The ab initio data
are in good agreement with the energy gap and band width derived from
thermoreflectance and x-ray photoemission experiments. The results show that
the wavefunction based approach applied here allows for well controlled
approximations and a transparent identification of the microscopic processes
which determine the electronic band structure.
