From the complete extended Hubbard-Holstein Hamiltonian we obtain a polaron
ic effective Hamiltonian by successive application of generalized displacem
ent and squeezing transformations, with wavevector dependent characteristic
parameters which make possible a phonon-induced long range interaction bet
ween charges, whose sign can change with the distance. As an application we
consider the four-site chain, in which the bare electronic interactions ar
e evaluated by model Wannier functions of gaussian shape. The ground states
for different ranges of interactions are obtained by exact diagonalization
of the effective Hamiltonian, followed by simultaneous and independent opt
imization of the displacement and squeezing parameters. We consider the beh
aviour of the static spin and charge correlation functions for the half-fil
led case, upon varying the shape of the Wannier functions for given electro
n-phonon coupling. Special attention is devoted to the influence of the pho
non coupling on the presence of competing or coexisting charge- and spin-or
dered states.