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Optical processes in insulators and semiconductors, including excitonic effects, can be described in principle exactly using time-dependent density-functional theory (TDDFT). Starting from a linearization of the TDDFT semiconductor Bloch equations in a two-band model, we derive a simple formalism for calculating exciton binding energies. This formalism leads to a generalization of the standard Wannier equation for excitons, featuring a nonlocal effective electron-hole interaction determined by long-range and dynamical exchange-correlation (XC) effects. We calculate exciton binding energies in several direct-gap semiconductors using exchange-only and model XC kernels.
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Turkowski et al. (2009) studied this question.
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