In the light of recent studies, we summarize our present theoretical unders
tanding of insulating oxides in low dimensionality, including unsupported c
lusters, planar or stepped surfaces and ultrathin films. We review the vari
ous theoretical approaches, their efficiency in calculating ground and exci
ted state properties, and their applications to the present systems. We dis
cuss the forces at work which determine the atomic structure around under-c
oordinated atoms (equilibrium geometries of very small clusters, bond lengt
hs, relaxation and rumpling at surfaces), the energetics associated with lo
w dimensionality (surface energies and mean cohesion energy in clusters), t
he electronic properties, such as electron distribution, magnetic interacti
ons and ordering, and electronic excitations (ionization potentials, electr
on affinity, quasiparticle spectra, d --> d and charge transfer excitations
).