The question I'm trying to ask is whether recursive CTE (either as defined
in the standard or as implemented in SQLite) carries the full capability of
evaluating recursive queries on appropriate data structures, or are there
queries that are beyond what it can do?

As far as I can see recursive CTE is very similar in capability (and
algorithm) to tail recursion. It's generally possible to code any loop and
most ordinary recursive functions in terms of tail recursion, which results
in highly efficient implementation. I'm interested to know where the limits
are, and what queries (if any) are beyond using this method.

If there is an academic paper or other reference that provides the answer
I'm happy to be pointed to that.

Regards
David M Bennett FACS

Andl - A New Database Language - andl.org


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