Starting from the microscopic light-matter interaction in form of the minim
al coupling Hamiltonian, the multipole approximation for the optical respon
se of localized electrons in atomic systems is extended to delocalized elec
trons in solids. A spatial averaging procedure is used to derive the electr
omagnetic sources for macroscopic Maxwell's equations as well as the corres
ponding many particle Hamiltonian on a coarse grained length scale. The res
ults are illustrated for semiconductor bulk material up to quadrupole momen
ts for the interband transitions, where gauge invariant equations of motion
for the optical response are obtained. (C) 2000 Elsevier Science B.V. All
rights reserved.