Michael Rauh will never forget when he first arrived on campus in 2005 to join the BEPP faculty.
“The faculty had decided to protest en masse against the IU President [at the time]. Hundreds of professors met in the IU Auditorium to speak out against him,” says Rauh. “While this was going on, a tornado passed over the town, so everyone had to congregate in the lobby and watch weather maps on laptops. That was a vivid memory!”
That wild experience didn’t serve to mar his time at IU, however.
“What I love about IU is the love that so many people have for the institution, both current students and faculty and alumni,” he says. “There is a feeling that this is a special place where people make lifelong memories. It makes you feel like you are part of something.”
Rauh was a professor of economics in England from 1997-2003, first in London and then in Liverpool. Following that, he taught at the University of North Dakota from 2003-2005. Through the years, he has taught at all levels, from undergrad to Ph.D. Currently, he teaches only MBAs, both in person and online.
His research focuses on incentives in organizations. For example, he published a paper at Management Science, which explains why the primary form of motivation in markets is financial incentives, whereas the primary form of motivation in firms is culture.
Professor Michael Rauh
“Since economic activity can be carried out in either institution, I provide conditions under which one institution should be preferred over the other,” says Rauh, who likes studying and teaching economics because it sheds light on the way the world really works, sometimes in surprising ways.
“Economists have a unique perspective, and students find it an eye-opening experience to learn to think like an economist,” says Rauh.
As much as he relishes his career, he admits that being an economist is tough—especially when submitting research papers to academic journals. The critical reviews and high rejection rates are particularly hard for young economists. Nevertheless, he recognizes that that’s part of life, and as the phrase goes, life is good.
“Most people don’t know that I play classical guitar,” says Rauh. “I don’t play especially well, which is why I hide this fact.”
In addition to music, Rauh finds solace in exercise, travel, and quality time spent with family. This past spring, he once again ran the Indy Mini Marathon, and in July, he and his family biked the Hebridean Way, a remote cycling route spanning nearly 200 miles across ten islands. Throughout the ride, which covers National Route 780, cyclists get to feast their eyes on the beautiful Atlantic coastline while also getting in a good workout as the route has some rugged hills.
Bloomington provides plenty of tranquility as well.
“The perfect Saturday is when I get up early, watch the sun rise as I do my long run, and then afterwards hop in the car with the family for a road trip somewhere new,” he says.
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