Accuracy of the density-matrix renormalization-group method

White's density-matrix renormalization-group (DMRG) method has been applied to the one-dimensional Ising model in a transverse field (ITF), in order to study the accuracy of the numerical algorithm. Due to the exact solubility of the ITF for any finite chain length, the errors introduced by the basis truncation procedure could have been directly analyzed. By computing different properties, like the energies of the low-lying levels or the ground-state one- and two-point correlation functions, we obtained a detailed picture of how these errors behave as functions of the various model and algorithm parameters. Our experience with the ITF contributes to a better understanding of the DMRG method, and may facilitate its optimization in other applications.