A general density matrix functional theory is formulated in terms of a basi
s representation of the density matrix in average ((R) over right arrow = (
(r) over right arrow (1) + (r) over right arrow (2))/2) and relative ((r) o
ver right arrow = (r) over right arrow (2) - (r) over right arrow (1)) coor
dinates. This representation involves a parameter set whose dimension by co
nstruction grows strictly linearly with system size. Furthermore, the two-e
lectron Coulomb and exchange contributions to the Hartree-Fock and Kohn-Sha
m energies factorize, and can be computed with reference only to two-index
integrals. The problem of,li-representability is addressed and solutions ar
e presented. Kinetic energy transpires to be the hardest term to compute ac
curately, and three different approaches are discussed. The subtle relation
ship between N-representability and kinetic energy is investigated. (C) 200
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