We propose a novel type system for effects and handlers using modal types. Conventional effect systems attach effects to function types, which can lead to verbose effect-polymorphic types, especially for higher-order functions. Our modal effect system provides succinct types for higher-order first-class functions without losing modularity and reusability. The core idea is to decouple effects from function types and instead to track effects through relative and absolute modalities, which represent transformations on the ambient effects provided by the context. We formalise the idea of modal effect types in a multimodal System F-style core calculus Met with effects and handlers. Met supports modular effectful programming via modalities without relying on effect variables. We encode a practical fragment of a conventional row-based effect system with effect polymorphism, which captures most common use-cases, into Met in order to formally demonstrate the expressive power of modal effect types. To recover the full power of conventional effect systems beyond this fragment, we seamlessly extend Met to Mete with effect variables. We propose a surface language Metel for Mete with a sound and complete type inference algorithm inspired by FreezeML.
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