We explore the use of exact diagonalization methods for solving the self-consistent equations of the cellular dynamical mean field theory for the one-dimensional regular and extended Hubbard models. We investigate the nature of the Mott transition and convergence of the method as a function of cluster size as well as the optimal allocation of computational resources between bath and cluster-impurity sites, with a view to develop a renormalization group method in higher dimensions. We assess the performance of the method by comparing results for the Green's functions in both the spin density wave and charge density wave phases with accurate density matrix renormalization group (DMRG) calculations.
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