Add to ORKGThe aim of my thesis is to investigate two important economics trends and their consequences for asset markets. First, the drift down in the labour share of income and the consequences for stock market pricing. Second, changes in nancing conditions and the consequences for housing markets. For each investigation it is crucial to consider an important feature of the real world market that is often missing from economic models: human capital cannot be traded; and housing rental markets are widespread. The rst chapter examines how the drift in the US labour share of income over the past 40 years has contributed to the rise in the equilibrium price-to-earnings ratio in the US stock market over the same period. Accounting for my modell...