Algebraic systems of equations define functions using recursion where parameter passing is permitted. This generalises the notion of a rational system of equations where parameter passing is prohibited. It has been known for some time that algebraic systems in Greibach Normal Form have unique solutions.

This paper presents a categorical approach to algebraic systems of equations which generalises the traditional approach in two ways i) we define algebraic equations for locally finitely presentable categories rather than just Set; and ii) we define algebraic equations to allow right-hand sides which need not consist of finite terms. We show these generalised algebraic systems of equations have unique solutions by replacing the traditional metric-theoretic arguments with coalgebraic arguments.