  Due to the dispersion of optical phonons, long range electron-phonon
correlations renormalize downwards the coupling strength in the Holstein model.
We evaluate the size of this effect both in a linear chain and in a square
lattice for a time averaged {\it e-ph} potential, where the time variable is
introduced according to the Matsubara formalism. Mapping the Holstein
Hamiltonian onto the time scale we derive the perturbing source current which
appears to be non time retarded. This property permits to disentangle phonon
and electron coordinates in the general path integral for an electron coupled
to dispersive phonons. While the phonon paths can be integrated out
analytically, the electron path integrations have to be done numerically. The
equilibrium thermodynamic properties of the model are thus obtained as a
function of the electron hopping value and of the phonon spectrum parameters.
We derive the {\it e-ph} corrections to the phonon free energy and show that
its temperature derivatives do not depend on the {\it e-ph} effective coupling
hence, the Holstein phonon heat capacity is strictly harmonic. A significant
upturn in the low temperature total heat capacity over $T$ ratio is attributed
to the electron hopping which largely contributes to the action.
