We have developed an algorithm for computing the magnetotelluric response of three-dimensional (3-D) earth models. It is a difference equation algorithm that is based on the integral forms of Maxwell's equations rather than the differential forms. This formulation does not require approximating derivatives of earth properties or electromagnetic fields, as happens when using the second-order vector diffusion equation. Rather, one must determine how averages are to be computed. Side boundary values for the H fields are obtained from putting two-dimensional (2-D) slices of the model into a larger-scale 2-D model and solving for the fields at the 3-D boundary positions. To solve the 3-D system of equations, we propagate an impedance matrix, which relates all the horizontal E fields in a layer to all the horizontal H fields in that same layer, up through the earth model. Applying a plane-wave source condition and the side boundary H field values allows us to solve for the unknown fields within the model. The results of our method compare favorably with results from previously published integral equation solutions.

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