  Cyclic data structures, such as cyclic lists, in functional programming are
tricky to handle because of their cyclicity. This paper presents an
investigation of categorical, algebraic, and computational foundations of
cyclic datatypes. Our framework of cyclic datatypes is based on second-order
algebraic theories of Fiore et al., which give a uniform setting for syntax,
types, and computation rules for describing and reasoning about cyclic
datatypes. We extract the "fold" computation rules from the categorical
semantics based on iteration categories of Bloom and Esik. Thereby, the rules
are correct by construction. We prove strong normalisation using the General
Schema criterion for second-order computation rules. Rather than the fixed
point law, we particularly choose Bekic law for computation, which is a key to
obtaining strong normalisation. We also prove the property of "Church-Rosser
modulo bisimulation" for the computation rules. Combining these results, we
have a remarkable decidability result of the equational theory of cyclic data
and fold.
