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The standard two-step scheme for modeling extracellular signals is to first compute the neural membrane currents using multicompartment neuron models (step 1) and next use volume-conductor theory to compute the extracellular potential resulting from these membrane currents (step 2). Here, we present the volume-conductor theory used in step 2. The neural output from step 1 can be represented in terms of (i) a set of point sources, (ii) a set of line sources, (iii) a current-source density, or (iv) one or several current dipoles. We derive equations for the extracellular potential under the approximations (i–iv), discuss the validity and applicability of the different approximations, and explain how they are related. We also discuss how to model the effects that the electrode itself can have on the measured extracellular potential.
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