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We develop a real-space extension of the dual fermion approach. This methodis formulated in terms of real-space Green's functions and local vertexfunctions, which enables us to discuss local and nonlocal correlations ininhomogeneous systems with an arbitrary geometric structure. We firstdemonstrate that the approach gives us reasonable results for a homogenousperiodic system by taking into account onsite and nearest-neighbor intersitecorrelations. Moreover, we study the half-filled Hubbard model on thequasiperiodic Penrose lattice and clarify the role of intersite correlationsfor the Mott transition. The intersite correlations lead to a rich structure inlocal observables which is inherited from the quasiperiodic structure of thelattice.

Intersite electron correlations on inhomogeneous lattices: a real-space dual fermion approach