“If the question is relevant, even an imperfect answer can be powerful”

We caught up with Marta Paczos – a Senior Economic Adviser at the UK’s Department for Business and Trade, where she co-leads the central modelling team. She is currently seconded to ESCoE to work on the UK firm-level data and Micro-Data Infrastructure (MDI) project.

What drew you to join ESCoE, and what excites you most about your new role?

I’m thrilled to (re)join ESCoE as a postdoctoral Research Associate, on secondment from the Department for Business and Trade where I co-lead a central modelling team. After several years in government, supporting policy development on issues ranging from the Covid-19 pandemic to trade negotiations and the UK’s response to US global tariff policy, I’m excited to take a step back from the fast-paced world of daily policy demands. This role offers a unique opportunity to strengthen the evidence base underpinning government decisions and to think more strategically about how we can harness firm-level microdata to inform policymaking more effectively.

You’ll be working with Adam Haunch (ESCoE) on the Micro-Data Infrastructure (MDI) project. Could you tell us a bit about this work and what you hope to contribute?

MDI is a data infrastructure platform designed with an ambitious goal of democratising access to internationally comparable firm-level microdata. Its core strength lies in its standardisation and customisability, allowing researchers to tailor data to specific policy questions. Adam recently gave an excellent overview of the project’s technical progress at an ESCoE workshop. My contribution will focus on applying a government economist’s lens: aligning MDI’s capabilities with current policy priorities and exploring how UK firm-level datasets can support better-informed decisions. This spans both short-term opportunities and longer-term ambitions. The list of specific research questions is still being developed, but I’d love to hear from others in the ESCoE community: if you have ideas or perspectives, please do reach out.

Your background spans government and research institutions. How do you see this experience helping to bridge the gap between research and policy implementation?

Having worked across both research and policy environments, I’ve developed a strong sense of what truly resonates with policymakers. Interestingly, it’s often not the most academically ‘prestigious’ work that has the greatest impact; rarely is it research from Top 5 journals. What’s in demand are robust international comparisons that either validate or challenge common trends in the UK economy. It is also very important to have accurate estimates of how different parts of the economy respond to changes (like prices or demand), broken down by specific sectors. These details are needed to make policy simulations and ‘what if’ scenarios realistic and reliable. ESCoE is uniquely positioned to deliver this kind of high-impact research. Its bringing together of statistical producers, academic researchers, and policy teams makes it an ideal environment for bridging the gap between rigorous analysis and practical policy relevance.

From your time at the Department for Business and Trade and HM Treasury, what insights have you gained about the role of evidence and modelling in policymaking? And what are the challenges?

I’ve seen firsthand that policymakers genuinely value robust analysis and modelling: there’s always space for high-quality evidence to inform decisions at the top. But the opportunity and the challenge are two sides of the same coin: it’s all about balancing pace and precision. The most impactful work is not only analytically sound but also delivered in time to shape decisions. I found this blog post by Jed Kolko particularly insightful on this topic: it captures the tension between academic rigour and policy relevance in a way that really resonates with my experience.

One of the toughest challenges is communicating uncertainty. Researchers often approach data with humility, knowing how messy it can be and the complexity involved in generating it. Translating that nuance into policy advice (and without undermining the credibility of the analysis) is a delicate art. It requires clarity, confidence, and a deep understanding of both the data and the policymaking context. This is also what motivates my time here at ESCoE.

ESCoE’s mission centres on improving the UK’s economic measurement. What areas of measurement interest you most?

As a trade economist by training and passion, I’m particularly drawn to firm-level analysis. One of the key insights in modern trade research is that it’s firms (not countries) that drive trade, and that differences between firms can have significant effects on the overall economy. This shift in perspective has reshaped both empirical and theoretical research, placing firms at the centre of economic analysis. This insight extends well beyond trade: it’s especially relevant to policymakers focused on growth and industrial strategy. That’s why I find ESCoE’s work on productivity, business dynamism, and innovation so compelling, in particular when it attempts to leverage firm-level microdata. The ability to ground research in detailed, real-world data opens exciting possibilities for more targeted, effective policy design.

What do you hope to achieve in your first year at ESCoE?

It’s only my second week, so I’m still settling in: meeting colleagues and diving into a lot of fascinating papers. Looking ahead, I hope to deepen my expertise in the UK firm-level microdata landscape, especially its use in industrial policy and productivity analysis with an international lens. I aim to build practical insights into data harmonisation, strengthen academic-policy collaboration, and return to the Department for Business and Trade  with a richer understanding of firm-level productivity dynamics. Ultimately, I see this secondment as the launchpad for many impactful research projects and partnerships that advance evidence-based policymaking. Hopefully this will extend beyond my time at ESCoE.

Finally, what advice would you give to early-career economists interested in working at the intersection of research and policy?

I’ve always been more drawn to policy-oriented research than pure academia. If that resonates with you, my advice is to stay curious, resilient, and open-minded about what impactful research really looks like. Your work does not need to explore complex methods to be valuable, though of course, the rigour still matters. What truly counts is asking meaningful questions that connect to real-world challenges. For me, one of the most important lessons from economics PhD training is learning how to convince others that your question is worth asking. If the question is relevant, even an imperfect answer can be powerful. And finally, since academic life can often feel isolating, it’s essential to take pride in your own progress and celebrate your successes along the way.