The U(N) Maxwell-Chern-Simons matrix gauge theory is proposed as an extension of Susskind's noncommutative approach. The theory describes D0-branes, nonrelativistic particles with matrix coordinates and gauge symmetry, that realize a matrix generalization of the quantum Hall effect. Matrix ground states obtained by suitable projections of higher Landau levels are found to be in one-to-one correspondence with the expected Laughlin and Jain hierarchical states. The Jain composite-fermion construction follows by gauge invariance via the Gauss law constraint. In the limit of commuting, "normal" matrices the theory reduces to eigenvalue coordinates that describe realistic electrons with Calogero interaction. The Maxwell-Chern-Simons matrix theory improves earlier noncommutative approaches and could provide another effective theory of the fractional Hall effect.. This is actually the Laughlin wave function at filling ν = 1/(k + 1) [5], upon interpreting the eigenvalues as the coordinates of N planar electrons in the lowest Landau level. Therefore, the celebrated Laughlin state was shown to be the exact ground state of the matrix theory that is completely determined by gauge invariance. This is the nicest result obtained in the matrix (noncommutative) approach.In spite of these findings, the Chern-Simons matrix model so far presented some difficulties that limited its applicability as a theory of the fractional Hall effect [20]:• The Chern-Simons matrix model does not possess quasi-particle excitations, only quasi-holes can be realized [14].• The Jain states with the filling fractions, ν = m/(mk + 1), m = 2, 3, . . ., cannot be realized in the theory, even including more boundary terms [15].• Even if the Laughlin wave function is obtained, the measure of integration differs from that of electrons in the lowest Landau level, owing to the noncommutativity of matrices [18]. As shown in Ref.[1], the ground state properties of the matrix theory and of the Laughlin state agree at long distances but differ microscopically.• Owing to the inherent noncommutativity, it is also difficult to match matrix observables with electron quantities of the quantum Hall effect [19].In this paper, we show that some of these problems can be overcome by upgrading the Chern-Simons model to the Maxwell-Chern-Simons matrix theory. This includes an additional kinetic term quadratic in time derivatives and the potential V = −gTr [X 1 , X 2 ] 2 , parametrized by the positive coupling constant g. All the terms in the action are fixed by the gauge principle because they are obtained by dimensional reduction of the threedimensional Maxwell-Chern-Simons theory. The matrix theory has been discussed in the literature of string theory as the low-energy effective theory of a stack of N D0-branes on certain higher-brane configurations [24]; in particular, D0-branes have been proposed as fundamental degrees of freedom in string theory [3].In section two, we introduce the Maxwell-Chern-Simons matrix theory, quantize the Hamiltonian and discuss the Gauss-law con...