In an earlier paper (referred to as I), the general structure of first-order Green's-function theories of the Heisenberg ferromagnet was analyzed, with particular emphasis on the spin-wave energy renormalization factor $R$. Spectral theorems and Dyson's rigorous low-temperature results were used to derive certain necessary conditions on $R$, and a critique of the standard first-order theories was also given. The special difficulties that occur in the case $S=\frac{1}{2}$ were brought out, and the impossibility of obtaining the correct low-$T$ results for both the spontaneous magnetization $\ensuremath{\sigma}$ and the specific heat $\ensuremath{\gamma}$ in a conventional first-order theory was established. In this paper, we present the theory promised in I: a completely consistent first-order Green's-function theory for $S=\frac{1}{2}$ that yields the correct low-$T$ results for both $\ensuremath{\sigma}$ and $\ensuremath{\gamma}$, and incorporates all the other constraints derived in I, among which are: the incorporation of all the extra spin-operator identities specific to $S=\frac{1}{2}$; the conservation of the zeroth and first moments of the spectral function; the determination of a unique expression for the longitudinal spin-spin correlation (in terms of $\ensuremath{\sigma}$ and the transverse correlation) from which various limits and special cases are recovered correctly; the inclusion of the leading effects of multiple spin-wave states via a dispersive part even in the lowest-order Green's function, following the derivation of an integral equation in the momentum variable for the latter quantity. It is emphasized that what follows is not just the application of yet another decoupling prescription to a well-known problem and the working out of its consequences. The problem of linearization is carefully scrutinized and a systematic derivation of the optimal result in this regard is given. The key ingredients are the retention of all possible two-spin correlations and the evaluation of the longitudinal spin-spin correlation in a manner free of arbitrary parameters. Finally, we show also that, as $\ensuremath{\sigma}\ensuremath{\rightarrow}0$, the only consistent first-order theory is that obtained in the well-known random-phase approximation, and that our formalism does indeed approach this limit as $T\ensuremath{\rightarrow}{T}_{c}$. We are able, therefore, to provide a satisfactory interpolation theory covering both the low-temperature region and the region near ${T}_{c}$. In a series of appendices it is shown precisely where and how the inconsistencies in various earlier decoupling schemes arise, mainly as a result of neglecting certain crucial two-spin correlations.
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