The branching ratios in the circular dichroism of the rare-earth Lu ed
ges are explained in a model where the 5d band is empty in the ground
state. In the final state the 5d radial wave function contracts not on
ly by the 5d-4f spin-spin interaction but by the complete exchange int
eraction. This explains the L(3)/L(2) ratios, the relative magnitude o
f the quadrupole contribution, and the dispersive shape of the signal
in ionic compounds.