Occurs check

The occurs check tests whether a type variable occurs inside the expression proposed as its replacement during type unification. After discarding a trivial equation such as $\alpha =\alpha$, solving $\alpha =\tau$ by a type substitution requires that $\alpha$ not occur in $\tau$. Thus $\alpha =\mathrm{int}\to \beta$ is permitted when $\alpha$ and $\beta$ are distinct, but $\alpha =\alpha \to \beta$ is rejected in our finite simple type grammar.

There is a short reason for the rejection. If a finite replacement $T$ for $\alpha$ existed, with replacement $B$ for $\beta$, the equation would become $T=T\to B$. The right side's abstract syntax tree has one new arrow node plus the nodes of $T$ and $B$, so it has strictly more nodes than $T$. Equal finite type expressions cannot have different sizes. Recursive types are a different design: they explicitly describe self-reference and specify how it interacts with typing judgments.