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We apply the density matrix renormalization group (DMRG) method to the two-dimensional delta function potential which is a simple quantum mechanical model with asymptotic freedom and formation of bound states. The system block and the environment block of the DMRG contain the low energy and high energy degrees of freedom, respectively. The ground state energy and the lowest excited states are obtained with very high accuracy. We compare the DMRG method with the similarity renormalization group method and propose its generalization to field theoretical models in high energy physics. © 1999 The American Physical Society.This work was supported by the DGES Spanish Grant No. PB97-1190.Peer Reviewe

Density Matrix Renormalization Group Approach to an Asymptotically Free Model with Bound States