Methods and properties of electron and phonon band structures--local density functional, Green functions (APW and KKR) and phase shift, pseudopotentials, tight binding. Representative systems: covalent, ionic, simple metals, transition metals, transition metal compounds, and correlation gaps. Screening, dielectric function and applications: optical properties and photoemission, excitons, electron-photon interaction, Kohn anomalies, lattice instabilities. Electrons and phonons at surfaces. Transport equations.