Type systems defined in this way are idealized, since in the most interesting instantiations both the terms of the coinductive Herbrand universe and goal derivations cannot be finitely represented. However, sound and quite expressive approximations can be implemented by considering only regular terms and derivations. In doing so, it is essential to introduce a proper subtyping relation formalizing the notion of approximation between types.

In this paper we study a subtyping relation on coinductive terms built on union and object type constructors. We define an interpretation of types as set of values induced by a quite intuitive relation of membership of values to types, and prove that the definition of subtyping is sound w.r.t. subset inclusion between type interpretations. The proof of soundness has allowed us to simplify the notion of contractive derivation and to discover that the previously given definition of subtyping did not cover all possible representations of the empty type.