Recent experimental developments give more and more access to cluster excit
ations beyond the regime of linear response. Most theoretical descriptions
of the induced nonlinear electron dynamics are based on the time-dependent
local density approximation (TDLDA) and related schemes. We review the pres
ent status of TDLDA calculations for metal clusters, considering formal asp
ects of the theory, recipes for its numerical implementation as well as a v
ariety of applications. These applications are presented by first summarizi
ng basic linear spectral properties of the systems under study and then int
roducing two mechanisms for strong excitations: collision with highly charg
ed and fast ions, and irradiation with strong femtosecond laser pulses. We
present results for observables that are relevant for experiments, includin
g ionization, energy balance, second-harmonic generation, electron emission
spectra and, last but not least, we discuss the effects of ionic motion du
ring the electronic dynamics. On the theoretical side, we also discuss semi
classical approaches and extensions beyond TDLDA, such as self-interaction
corrections and the influence of electron-electron collisions. (C) 2000 Els
evier Science B.V. All rights reserved.