This master’s thesis investigates the impact of changes in public wealth on the distribution of personal wealth in advanced economies. Against the backdrop of ongoing public debates about housing, ownership, and inequality, it explores the broader relationship between decreasing public wealth and increasing personal wealth concentration, a trend that has been observed since the 1980s. Based on the combination of various research strands, the study proposes two mechanisms. First, state-driven demand impacts asset prices, especially for limited goods like housing, and second, asset reallocation between the public and personal sectors shifts income streams, shaping personal wealth accumulation. Using data from the World Inequality Database covering 14 countries between 1996 and 2019, the analysis combines a pooled OLS regression with a set of robustness checks to reveal considerable variation across asset types and national contexts. A comparative case study of Norway and Germany confirms these findings but points out that aggregated national accounts data fail to capture important dynamics. Using housing as an example, the analysis highlights the need for more detailed asset decomposition, particularly within the equity category, and demonstrates how structural and institutional factors shape the relationship between public and personal wealth. Given these insights, the study emphasizes the importance of country-specific, asset-level analysis. The findings suggest that public wealth is more than just a political outcome. It is an important factor in the emergence of inequality, and its distributional effects need to be better understood in order to make informed policy decisions.