This model study investigates the validity of methods used to interpret linear (laminar) multielectrode recordings. In computer experiments extracellular potentials from a synaptically activated population of about 1,000 pyramidal neurons are calculated using biologically realistic compartmental neuron models combined with electrostatic forward modeling. The somas of the pyramidal neurons are located in a 0.4 mm high and wide columnar cylinder, mimicking a stimulus-evoked layer-5 population in a neocortical column. Current-source density (CSD) analysis of the low-frequency part (<500 Hz) of the calculated potentials (local field potentials, LFP) based on the 'inverse' CSD method is, in contrast to the 'standard' CSD method, seen to give excellent estimates of the true underlying CSD. The high-frequency part (>750 Hz) of the potentials (multi-unit activity, MUA) is found to scale approximately as the population firing rate to the power 3/4 and to give excellent estimates of the underlying population firing rate for trial-averaged data. The MUA signal is found to decay much more sharply outside the columnar populations than the LFP.