Set-based analysis (SBA) produces good predictions about the behavior of fu
nctional and object-oriented programs. The analysis proceeds by inferring c
onstraints that characterize the data flow relationships of the analyzed pr
ogram. Experiences with MrSpidey, a static debugger based on SEA, indicate
that SEA can adequately deal with programs of up to a couple of thousand li
nes of code. SEA fails. however, to cope with larger programs because it ge
nerates systems of constraints that are at least linear, and possibly quadr
atic, in the size of the analyzed program. This article presents theoretica
l and practical results concerning methods for reducing the size of constra
int systems. The theoretical results include a proof-theoretic characteriza
tion of the observable behavior of constraint systems for program component
s, and a complete algorithm for deciding the observable equivalence of cons
traint systems. In the course of this development we establish a close conn
ection between the observable equivalence of constraint systems and the equ
ivalence of regular-tree grammars. We then exploit this connection to adapt
a variety of algorithms for simplifying grammars to the problem of simplif
ying constraint systems. Based on the resulting algorithms, we have develop
ed componential set-based analysis, a modular and polymorphic variant of SE
A. Experimental results verify the effectiveness of the simplification algo
rithms and the componential analysis. The simplified constraint systems are
typically an order of magnitude smaller than the original systems. These r
eductions in size produce significant gains in the speed of the analysis.