One should show, that $$S(n,x,y):= (y-n)\sum_{k=0}^n \binom{n}{k} (x+k)^{k+1} (y-k)^{n-k-1}$$ satisties the recursion $$S(n,x,y)=x(x+y)^n +n S(n-1,x+1,y-1),\quad \text{for} ~n\geq1,\quad S(0,x,y)=x.$$ I know that we should use Abels' generalization of the binomial theorem, that is $$\begin{equation} (x + y)^n = \sum_{k=0}^n \binom{n}{k} x (x-kz)^{k-1} (y + kz)^{n-k}\end{equation}$$ for any $x, y, z \in\mathbb{R}$.
STARTING SOLUTION:
If I start with the right side, I get $$\begin{align*}x (x+y)^n &+ n S(n-1,x+1,y-1) \\ &= x (x+y)^n + n (y-n+1) \sum_{k=0}^{n-1} \binom{n-1}{k} (x+1+k)^{k+1} (y-1-k)^{n-k-2}\\ &= x\sum_{k=0}^n \binom{n}{k} x (x-kz)^{k-1} (y + kz)^{n-k} \\ &\hspace{2.1cm}+ n (y-n+1) \sum_{k=0}^{n-1} \binom{n-1}{k} (x+1+k)^{k+1} (y-1-k)^{n-k-2}\\ &=\cdots\\ &= (y-n) \sum_{k=0}^n \binom{n}{k} (x+k)^{k+1} (y-k)^{n-k-1} = S(n,x,y),\end{align*}$$ I do not really know how to continue from here, those anyone have a clue what could be inserted for z (and how one could shift the indices of the second sum to get the right term)?
We start with the right-hand side and keep at first the focus on $nS(n-1,x+1,y+1)$.
Comment:
In (1) we use the definition of $S(n,x,y)$.
In (2) we shift the index $k$ by one.
In (3) we use the binomial identity $\binom{n}{k}=\binom{n-1}{k-1}\frac{n}{k}$. We also start with index $k=0$ which doesn't change anything.
In (4) we use $k=(x+k)-x$ and obtain a representation with $S(n,x,y)$.
This substitution finally does the job.
Comment:
In (7) we use the substitution $x\to y-n$ and $y\to x+n$.
In (8) we use Abel's generalised binomial theorem from (6).
In (9) we change the order of summation $k\to n-k$.