The aim of the conference is to discuss new modeling approaches and novel empirical evidence on heterogeneity in the behaviour of firms, households and financial intermediaries, and on policies aimed to address economic challenges arising in specific markets, regions or group of agents but affecting the aggregate economy. Contributions focusing on the timevariation of heterogeneity and inequality over the business cycle, compositional effects of entry and exit into the labor, goods and financial markets, and the implications for policy instruments and objectives are especially welcome.