We present a joint theoretical and experimental investigation of the electr
onic and optical properties of vanadium pentoxide. Electron energy-loss spe
ctroscopy in transmission was employed to measure the momentum-dependent lo
ss function. This in turn was used to derive the optical conductivity, whic
h is compared to the results of band-structure calculations. A good qualita
tive and quantitative agreement between the theoretical and the experimenta
l optical conductivity was observed. The experimentally observed anisotropy
of the optical properties of V2O5 could be understood in the light of an a
nalysis of the theoretical data involving the decomposition of the calculat
ed optical conductivity into contributions from transitions into selected e
nergy regions of the conduction band. In addition, based upon a tight bindi
ng fit to the band structure, values are given for the effective V 3d(xy)-O
2p hopping terms and are compared to the corresponding values for alpha'-N
aV2O5.