Raghavendra Rau is a professor of finance at the University of Cambridge. Established in 1208, Cambridge is the second oldest English speaking university in the world (we try not to talk about the other place too much). It was also one of the most highly reputed universities in the world. Until they hired him …
What does Raghavendra Rau do at Cambridge? He carries out research on financial markets. There are usually four players in the markets: Firms (who need money), Investors (who have money and want to invest), Intermediaries (who match firms and investors), and the government (who sets the rules of the game).
He studies how firms, intermediaries, and investors behave. This behaviour changes when the government rules change. I don’t study why governments change the rules of the game. Like most of his colleagues, he takes government as an exogenous force that affects all the other players (though this is just a simplification).