A finite axiomatization of inductive-recursive definitions

Abstract Induction-recursion is a schema which formalizes the principles for introducing new sets in Martin-L"of's type theory. It states that we may inductively define a set while simultaneously defining a function from this set into an arbitrary type by structural recursion. This extends the notion of an inductively defined set substantially and allows us to introduce universes and higher order universes (but not a Mahlo universe). In this article we give a finite axiomatization of inductive-recursive definitions. We prove consistency by constructing a set-theoretic model which makes use of one Mahlo cardinal