Kevin Hoover quote on microfoundations based on representative agent modeling. Aggregation based on similarities of individuals assume similarity of individuals. In some cases that hold, in many others, not, and where it doesn't hold are the points of interest.
Not only does the representative-agent model fail to provide an analysis of those interactions, but it seems likely that that they will defy an analysis that insists on starting with the individual, and it is certain that no one knows at this point how to begin to provide an empirically relevant analysis on that basis.You can't get there from here.
Lars P. Syll’s Blog
On the poverty of microfoundationalist fantasies
Lars P. Syll | Professor, Malmo University