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This article deals with two theoretical aspects of lexical derivation, productivity and graduality. After a discussion of transparency and opaqueness in Old English word-formation, it focuses on lexical productivity and puts forward a typology of recursive phenomena. On the basis of this typology, the morphological template of the Layered Structure of the Word is revised. The main conclusion is that a more diachronically oriented analysis is likely to opt for a decompositional template, whereas a more synchronically directed study which seeks typological validity will probably favour the template with one functional slot. If the focus is on diachronic linguistics, a template based on minimal constituent analysis can guarantee a detailed description of the derivational steps of the word, including non-affixal derivation and semantically opaque affixes.
