G. Vignale et W. Kohn, CURRENT-DEPENDENT EXCHANGE-CORRELATION POTENTIAL FOR DYNAMICAL LINEAR-RESPONSE THEORY, Physical review letters, 77(10), 1996, pp. 2037-2040
The frequency-dependent exchange-correlation potential, which appears
in the usual Kohn-Sham formulation of a time-dependent linear response
problem, is a strongly nonlocal functional of the density, so that a
consistent local density approximation generally does not exist. This
problem can be avoided by choosing the current density as the basic va
riable in a generalized Kohn-Sham theory. This theory admits a local a
pproximation which, for fixed frequency, is exact in the Limit of slow
ly varying densities and perturbing potentials.