Magneto-optical Kerr effect (MOKE) spectra of a paramagnetic fee Pd me
tal film, measured with high sensitivity in an applied magnetic field
of 1.5 T over a photon energy range 0.8-4.8 eV, are presented. Ab init
io linear-muffin-tin-orbital calculations reproduce the experimental s
pectra well, and explain the microscopic origin of the magneto-optical
(MO) response in terms of the individual interband transitions. A ban
d-by-band decomposition of the fee Pd MO spectra is presented, and tra
nsitions responsible for prominent structures in the spectra are ident
ified. The dominant role of transitions from states in the vicinity of
the Fermi level is found. It is found and explained that the proporti
onality between the magnitude of the MOKE spectra and the magnetic mom
ent induced on the Pd atom holds over two orders of magnitude up to th
e value of similar to 0.25 mu(B) typical for magnetic Pd compounds. It
is shown that, in spite of the different mechanisms of the Pd magneti
zation, the MOKE spectra of the paramagnetic Pd metal in the external
magnetic field are similar to the spectra of the ferromagnetic diluted
Co-Pd and Fe-Pd alloys. [S0163-1829(98)01036-4].