The electronic structure of layered Sr3Ru2O7 in its orthorhombic structure
is investigated using density functional calculations. The band structure n
ear the Fermi energy, consists of Ru t(2g) states hybridized with O p orbit
als. The gz and st bands, which are largely responsible for the nesting rel
ated antiferromagnetic spin fluctuations in Sr(2)Ru4 split pairwise into ev
en and odd combinations due to the interlayer coupling reducing the strengt
h of the nesting. The xy bands show much less interplanar coupling as expec
ted, and also less c-axis dispersion, so that the barrel-like sections are
largely intact compared to the single layer material. The zone folding due
to orthorhombicity yields small cylindrical lens shaped Fermi surfaces cent
ered at the midpoints of the former tetragonal Gamma -X lines. Fixed spin m
oment calculations indicate that tetragonal Sr3Ru2O7 is borderline ferromag
netic but that orthorhombicity favors magnetism via a substantial magnetoel
astic coupling. These results are related to experimental observations part
icularly in regard to magnetic properties.