This book investigates whether modern macroeconomic models possess valid microfoundations by analyzing the impact of data aggregation on economic theory. The authors, Marco Lippi and Mario Forni, utilize rigorous econometric methodology to challenge the representative-agent framework. They argue that the assumption of homogeneity in aggregate data is fundamentally flawed and that standard macroeconomic conclusions often fail to survive when heterogeneity is properly accounted for in the analysis.

Experts in the field recognize this text as a critical technical challenge to standard macroeconomic modeling practices. Readers frequently note the high level of mathematical density and the specialized nature of the econometric arguments presented throughout the work.