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Self-application in the lambda-calculus is logically consistent.
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Reference material and encyclopedia entries state that lambda calculus features a logically consistent formulation and that self-application operates correctly as a mechanism for recursion.

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a formulation which was logically consistent, and documented it in 1940. The lambda calculus consists of a language of lambda terms, which are defined In mathematical logic, the lambda calculus (also written as λ-calculus) is a formal system for expressing computation based on function abstraction and application using variable binding and substitution. Untyped lambda calculus, the topic of this article, is a universal machine, i.e. a model of computation that can be used to simulate any Turing machine (and vice versa). It was introduced by the In mathematical logic, the lambda calculus (also written as λ-calculus) is a formal system for expressing computation based on function abstraction and application using variable binding and substitution. Untyped lambda calculus, the topic of this article, is a universal machine, i.e. a model of computation that can be used to simulate any Turing machine (and vice versa). It was introduced by the mathematician Alonzo Church in the 1930s as part of his research into the foundations of mathematics. In 1936, Church found a formulation which was logically consistent, and documented it in 1940. let f = N in M By chaining such definitions, one can write a lambda calculus "program" as zero or more function definitions, followed by one lambda-term using those functions that constitutes the main body of the program. A notable restriction of this let is that the name f may not be referenced in N, for N is outside the scope of the abstraction binding f, which is M; this means a recursive function definition cannot be written with let. The letrec construction would allow writing recursive function definitions, where the scope of the abstraction binding f includes N as well as M. Or self-application a-la that which leads to Y combinator could be used. Recursion is when a function invokes itself. What would a value be which were to represent such a function? It has to refer to itself somehow inside itself, just as the definition refer In mathematical logic, the lambda calculus (also written as λ-calculus) is a formal system for expressing computation based on function abstraction and application using variable binding and substitution. Untyped lambda calculus, the topic of this article, is a universal machine, i.e. a model of computation that can be used to simulate any Turing machine (and vice versa). It was introduced by the mathematician Alonzo Church in the 1930s as part of his research into the foundations of mathematics. In 1936, Church found a formulation which was logically consistent, and documented it in 1940. let f = N in M By chaining such definitions, one can write a lambda calculus "program" as zero or more function definitions, followed by one lambda-term using those functions that constitutes the main body of the program. A notable restriction of this let is that the name f may not be referenced in N, for N is outside the scope of the abstraction binding f, which is M; this means a recursive function definition cannot be written with let. The letrec construction would allow writing recursive function definitions, where the scope of the abstraction binding f includes N as well as M. Or self-application a-la that which leads to Y combinator could be used. Recursion is when a function invokes itself. What would a value be which were to represent such a function? It has to refer to itself somehow inside itself, just as the definition refers to itself inside itself. If this value were to contain itself by value, it would have to be of infinite size, which is impossible. Other notations, which support recursion natively, overcome this by referring to the function by name inside its definition. Lambda calculus cannot express this, since in it there simply are no names for terms to begin with, only arguments' names, i.e. parameters in abstractions. Thus, a lambda expression can receive itself as its argument and refer to (a copy of) itself via the corresponding parameter's name. This will work fine in case it was indeed called with itself as an argument. For example, (λx.x x) E = (E E) will express recursion when E is an abstraction which is applying its parameter to itself inside its body to express a recursive call. Since this parameter receives E as its value, its self-application will be the same (E E) again. As a concrete example, consider the factorial function F(n), recursively defined by F = E E = λn.(1, if n = 0; else n × (E E (n−1))) Here s s becomes the same (E E) inside the result of the application (E E), and using the same function for a call is the definition of what recursion is. The self-application achieves replication here, passing the function's lambda expression on to the next invocation as an argument value, making it available to be referenced there by the parameter name s to be called via the self-application s s, again and again as needed, each time re-creating the lambda-term F = E E. The application is an additional step just as the name lookup would be. It has the same delaying effect. Instead of having F inside itself as a whole up-front, delaying its re-creation until the next call makes its existence possible by having two finite lambda-terms E inside it re-create it on the fly later as needed. This self-applicational approach solves it, but requires re-writing each recursive call as a self-application. We would like to have a generic solution, without the need for any re-writes: Every recursively defined function can be seen as a fixed point of some suitably defined higher order function (also known as functional) closing over the recursive call with an extra argument. Therefore, using Y, every recursive function can be expressed as a lambda expression. In particular, we can now cleanly define the subtraction, multiplication, and comparison predicates of natural numbers, using recursion. When Y combinator is coded directly in a strict programming language, the applicative order of evaluation used in such
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