We specify and estimate a small fix-price model with quantity rationing on both the goods and labor markets. The side of the market which is rationed is random. The model is able to generate a productivity cycle and the degree of capacity utilization is endogenous. The rationing scheme, allocating supply between the various components of demand is estimated. The probabilities of being in the various regimes, the intensity of the disequilibrium on the markets, and the results of policy exercises are discussed.