In the system F (AKA λ2), all the inhabitants ∀α.α→α→α indeed λ-equal to K or K* .
First, if M : ∀α.α→α→α , then it has the normal form N (since the system F is normalized) and, by the subject reduction theorem (see Barendregt: Lambda calculi with types ), also N : ∀α.α→α→α .
See how these normal shapes look. (We will use the generation lemma for λ2; see Book Barendregt for formal details.)
If N is a normal form, then N (or any of its subexpressions) must be in the shape of a head, that is, an expression of the form λx1 ... xn. y P1 ... Pk λx1 ... xn. y P1 ... Pk , where N and / or K can also be 0.
For case N must be at least one λ, because initially we do not have any variable in the input context that would replace y . So, N = λx.U and x:α |- U:α→α .
Now, in the case of U must be at least one λ, because if U were just y P1 ... Pk , then y would have a function type (even for k = 0 we need y:α→α ), but we only have x:α in context. So, N = λxy.V and x:α, y:α |- V:α .
But V cannot be λ.. , because then it will have the type of function τ→σ . So, V should only be of the form z P1 ... Pk , but since we do not have any kind of function type variable in the context, K must be 0, and therefore V can only be x or y .
Thus, in the normal form of type ∀α.α→α→α there are only two members: λxy.x and λxy.y , and all other members of this type are β-equal to one of them.
Using similar reasoning, we can prove that all the inhabitants of ∀α.α→(α→α)→α β-equal to the church digit. (And I think that for the type ∀α.(α→α)→α→α situation is a little worse, we also need p-equality, since λf.f and λfx.fx correspond to 1 , but not β-equal, just βη-equal.)