We further develop an extended dynamical mean-field approach introduced ear
lier. It goes beyond the standard D = infinity dynamical mean field theory
by incorporating quantum fluctuations associated with intersite (Ruderman-K
ittel-Kasuya-Yosida like) interactions. This is achieved by scaling the int
ersite interactions to the same power in 1/D as that for the kinetic terms.
In this approach, a correlated lattice problem is reduced to a single-impu
rity Anderson model with additional self-consistent bosonic baths. Here, we
formulate the approach in terms of standard perturbation expansions. We sh
ow that the two-particle vertex functions are momentum-dependent, while the
single-particle self-energy remains local. In spite of this, the approach
is conserving. Finally, we also determine the form of a momentum-dependent
dynamical susceptibility; the resulting expression relates it to the corres
ponding Weiss field, local correlation function and (momentum-dependent) in
tersite coupling.