Recent contributions have suggested that technology shocks have a negative impact on hours, contrary to the prediction of standard flexible-price models of the business cycle. Some authors have interpreted this finding as evidence in favour of sticky-price models, while others have either...

This paper proposes a multisectoral model to investigate bottlenecks in Italian industry and their macroeconomic impact. We use highly disaggregated measures of capacity utilization rate, data on inter-sectoral transactions and linear programming techniques. According to our results, binding...