Abstract
The effects of electron and hole correlations on the optical properties of quantum wells are reviewed. Local density-functional theory of two-component plasmas is advocated as an easy-to-apply and accurate method for the calculation of the band-gap renormalisation in high-density plasmas. If extended to include excitonic correlations caused by an attractive interparticle interaction spectral lineshapes can also be calculated. The enhancement of excitonic correlations in plasmas by magnetic fields is discussed in the mean-field approximation.
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