We extend previous results on the exponential off-diagonal decay of the entries of analytic functions of banded and sparse matrices to the case where the matrix entries are elements of a $C^*$-algebra.
Motivated by applications in quantum chemistry and solid state physics, we apply general results from approximation theory and matrix analysis to the study of the decay properties of spectral projectors associated with large and sparse Hermitian matr
ices. Our theory leads to a rigorous proof of the exponential off-diagonal decay (nearsightedness) for the density matrix of gapped systems at zero electronic temperature in both orthogonal and non-orthogonal representations, thus providing a firm theoretical basis for the possibility of linear scaling methods in electronic structure calculations for non-metallic systems. We further discuss the case of density matrices for metallic systems at positive electronic temperature. A few other possible applications are also discussed.
