We present an explanation of recently observed giant magnetic moment and room-temperature ferromagnetism in the dielectric GaN doped with Gd. Our approach uses the polarization mechanism of exchange interaction, which occurs if the d-level of Gd appears in the bandgap close to the valence band edge. Calculated ferromagnetic critical temperature and the value of the magnetic moment well correspond to experimental findings.
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Litvinov et al. (2009) studied this question.
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