Ideal ferroelectrics have mostly been modeled as insulators, i.e., infinite
band gap materials, having a spontaneous polarization. Based on this assum
ption, theories for the finite size effect, the domain configuration, and t
he depolarization field instability have been proposed. However, most of ox
ide perovskite ferroelectrics have finite band gaps of 3 to 4 eV. We show t
hat the inclusion of the finite band gap effect changes drastically convent
ional understanding of the finite size effect and others. The conclusions e
xtracted from the present approach are consistent with recent experimental
results. In particular. we discuss the stability of ferroelectric memory de
vices in detail.