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This paper considers parametricity and its resulting free theorems for nested data types. Rather than representing nested types via their Church encodings in a higher-kinded or dependently typed extension of System F, we adopt a functional programming perspective and design a Hindley-Milner-style calculus with primitives for constructing nested types directly as fixpoints. Our calculus can express all nested types appearing in the literature, including truly nested types. At the term level, it supports primitive pattern matching, map functions, and fold combinators for nested types. Our main contribution is the construction of a parametric model for our calculus. This is both delicate and challenging: to ensure the existence of semantic fixpoints interpreting nested types, and thus to establish a suitable Identity Extension Lemma for our calculus, our type system must explicitly track functoriality of types, and cocontinuity conditions on the functors interpreting them must be appropriately threaded throughout the model construction. We prove that our model satisfies an appropriate Abstraction Theorem and verifies all standard consequences of parametricity for primitive nested types. 

GADTs can be represented either as their Church encodings a la Atkey, or as fixpoints a la Johann and Polonsky. While a GADT represented as its Church encoding need not support a map function satisfying the functor laws, the fixpoint representation of a GADT must support such a map function even to be well-defined. The two representations of a GADT thus need not be the same in general. This observation forces a choice of representation of data types in languages supporting GADTs. In this paper we show that choosing whether to represent data types as their Church encodings or as fixpoints determines whether or not a language supporting GADTs can have parametric models. This choice thus has important consequences for how we can program with, and reason about, these advanced data types.