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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.

Type unification finds a type substitution making specified type expressions equal, or reports incompatible constraints. In our simple type grammar, matching two function types reduces to matching their argument types and their result types. Distinct base types int and bool fail to match; solving a type variable against a nontrivial type expression uses the occurs check.

// Target: computer-science.bigb