The exchange-correlation energy in Kohn-Sham density functional theory
is expressed as a functional of the electronic density and the Kohn-S
ham orbitals. An alternative to Kohn-Sham theory is to express the ene
rgy as a functional of the reduced first-order density matrix or equiv
alently the natural orbitals. We present an approximate, simple, and p
arameter-free functional of the natural orbitals, based solely on scal
ing arguments and the near satisfaction of a sum rule. Our tests on at
oms show that it yields on average more accurate energies and charge d
ensities than the Hartree-Fock method, the local density approximation
, and the generalized gradient approximations.