See Jamet, J-F. (2011), “The Optimal Assignment of Prerogatives to Different Levels of Government in the EU”, Journal of Common Market Studies, Vol. 49, pp.563-584; and Pisani-Ferry, J. and Fuest, C. (2019), “A Primer on Developing European Public Goods”, EconPol Policy Report, Vol. 3, November. 16. See Panetta, F. (2022 a), op. cit. 17. Public goods are thus goods that are non-rivalrous and non-excludable.
The company's failure would thus likely have led to a further sharp decline in confidence in the global banking system and possibly to the collapse of other major financial institutions. At best, the consequences of AIG's failure would have been a significant intensification of an already severe financial crisis and a further worsening of economic conditions.