--- Substitute arg for x in expr
-beta (App (Lam x expr) arg) = change $ substitute [(x, arg)] expr
+-- Substitute arg for x in expr. For value lambda's, also clone before
+-- substitution.
+beta (App (Lam x expr) arg) | CoreSyn.isTyVar x = setChanged >> substitute x arg expr
+ | otherwise = setChanged >> substitute_clone x arg expr