In this paper we present and study a categorical formulation of the W-types of Martin-Löf. These are essentially free term algebras where the operations may have finite or infinite arity. It is shown that W-types are preserved under the construction of sheaves and Artin gluing. In the proofs we avoid using impredicative or nonconstructive principles.

We introduce a predicative version of topos based on the notion of small maps in algebraic set theory, developed by Joyal and one of the authors. Examples of stratified pseudotoposes can be constructed in Martin-Löf type theory, which is a predicative theory. A stratified pseudotopos admits construction of the internal category of sheaves, which is again a stratified pseudotopos. We also show how to build models of Aczel-Myhill constructive set theory using this categorical structure.