See my reply to the siblings comment with the working c++ example. The call to the effect function is not a tail call: the effect function will eventually resume its caller, providing the next continuation to call. Definitely there is no colored function problem. So you will be able to yield from a for loop just fine.

As far as I understand effects are similar to delimited continuations in the way the effect handler is found via dynamic scoping, but in addition there is an extension to the type system to guarantee that at least one effect handler of the correct type handler is in place.

So I'm wondering if it wouldn't it be better, or at least equivalent , to simply pass the continuation around (i.e with lexical scope) as a first class value and attach the effect type to it, obviating the need for an ad hoc type system extension.

I'm must be missing something and there must be some use cases that can't be easily expressed this way.