The matter power spectrum describes the density contrast of the universe (the difference between the local density and the mean density) as a function of scale. It is the Fourier transform

Fourier transform

In mathematics, Fourier analysis is a subject area which grew from the study of Fourier series. The subject began with the study of the way general functions may be represented by sums of simpler trigonometric functions...

 of the matter correlation function. On large scales, gravity competes with cosmic expansion, and structures grow according to linear theory. In this regime, the density contrast field is Gaussian, Fourier modes evolve independently, and the power spectrum is sufficient to completely describe the density field. On small scales, gravitational collapse is non-linear, and can only be computed accurately using N-body simulation

N-body simulation

An N-body simulation is a simulation of a dynamical system of particles, usually under the influence of physical forces, such as gravity . In cosmology, they are used to study processes of non-linear structure formation such as the process of forming galaxy filaments and galaxy halos from dark...

s. Higher-order statistics are necessary to describe the full field at small scales.