diff --git a/idea/src/org/jetbrains/jet/lang/parsing/JetParsing.java b/idea/src/org/jetbrains/jet/lang/parsing/JetParsing.java
index 669ea8171ab..d6ec63276ca 100644
--- a/idea/src/org/jetbrains/jet/lang/parsing/JetParsing.java
+++ b/idea/src/org/jetbrains/jet/lang/parsing/JetParsing.java
@@ -1412,8 +1412,10 @@ public class JetParsing extends AbstractJetParsing {
                 }
                 if (isFunctionTypeContents) {
                     if (!tryParseValueParameter()) {
-                            parseModifierList(); // lazy, out, ref
-                            parseTypeRef();
+                        PsiBuilder.Marker valueParameter = mark();
+                        parseModifierList(); // lazy, out, ref
+                        parseTypeRef();
+                        valueParameter.done(VALUE_PARAMETER);
                     }
                 } else {
                     parseValueParameter();
diff --git a/idea/src/org/jetbrains/jet/lang/resolve/ClassDescriptorResolver.java b/idea/src/org/jetbrains/jet/lang/resolve/ClassDescriptorResolver.java
index c05759145a0..ec87ecf28c9 100644
--- a/idea/src/org/jetbrains/jet/lang/resolve/ClassDescriptorResolver.java
+++ b/idea/src/org/jetbrains/jet/lang/resolve/ClassDescriptorResolver.java
@@ -2,14 +2,8 @@ package org.jetbrains.jet.lang.resolve;
 
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
-import org.jetbrains.jet.lang.psi.JetClass;
-import org.jetbrains.jet.lang.psi.JetDelegationSpecifier;
-import org.jetbrains.jet.lang.psi.JetTypeParameter;
-import org.jetbrains.jet.lang.psi.JetTypeReference;
-import org.jetbrains.jet.lang.types.ClassDescriptor;
-import org.jetbrains.jet.lang.types.JetStandardClasses;
-import org.jetbrains.jet.lang.types.Type;
-import org.jetbrains.jet.lang.types.TypeParameterDescriptor;
+import org.jetbrains.jet.lang.psi.*;
+import org.jetbrains.jet.lang.types.*;
 import org.jetbrains.jet.lexer.JetTokens;
 
 import java.util.*;
@@ -106,4 +100,12 @@ public class ClassDescriptorResolver {
             return super.getTypeParameterDescriptor(name);
         }
     }
+
+    @NotNull
+    public PropertyDescriptor resolvePropertyDescriptor(@NotNull JetScope scope, @NotNull JetParameter parameter) {
+        return new PropertyDescriptor(
+                AttributeResolver.INSTANCE.resolveAttributes(parameter.getModifierList()),
+                parameter.getName(),
+                TypeResolver.INSTANCE.resolveType(scope, parameter.getTypeReference()));
+    }
 }
diff --git a/idea/src/org/jetbrains/jet/lang/resolve/TypeResolver.java b/idea/src/org/jetbrains/jet/lang/resolve/TypeResolver.java
index 805c9e6ea1a..07dd6c642f5 100644
--- a/idea/src/org/jetbrains/jet/lang/resolve/TypeResolver.java
+++ b/idea/src/org/jetbrains/jet/lang/resolve/TypeResolver.java
@@ -70,6 +70,21 @@ public class TypeResolver {
                 result[0] = JetStandardClasses.getTupleType(resolveTypes(scope, type.getComponentTypeRefs()));
             }
 
+            @Override
+            public void visitFunctionType(JetFunctionType type) {
+                JetTypeReference receiverTypeRef = type.getReceiverTypeRef();
+                Type receiverType = receiverTypeRef == null ? null : resolveType(scope, receiverTypeRef);
+
+                List<Type> parameterTypes = new ArrayList<Type>();
+                for (JetParameter parameter : type.getParameters()) {
+                    parameterTypes.add(resolveType(scope, parameter.getTypeReference()));
+                }
+
+                Type returnType = resolveType(scope, type.getReturnTypeRef());
+
+                result[0] = JetStandardClasses.getFunctionType(attributes, receiverType, parameterTypes, returnType);
+            }
+
             @Override
             public void visitJetElement(JetElement elem) {
                 throw new IllegalArgumentException("Unsupported type: " + elem);
diff --git a/idea/src/org/jetbrains/jet/lang/types/JetStandardClasses.java b/idea/src/org/jetbrains/jet/lang/types/JetStandardClasses.java
index 6bf9eacfe5b..5ec30be0607 100644
--- a/idea/src/org/jetbrains/jet/lang/types/JetStandardClasses.java
+++ b/idea/src/org/jetbrains/jet/lang/types/JetStandardClasses.java
@@ -1,6 +1,7 @@
 package org.jetbrains.jet.lang.types;
 
 import org.jetbrains.annotations.NotNull;
+import org.jetbrains.annotations.Nullable;
 
 import java.util.*;
 
@@ -62,7 +63,7 @@ public class JetStandardClasses {
                 parameters.add(new TypeParameterDescriptor(
                         Collections.<Attribute>emptyList(),
                         Variance.OUT_VARIANCE, "T" + j,
-                        Collections.<Type>emptySet()));
+                        Collections.singleton(getNullableAnyType())));
             }
             TUPLE[i] = new ClassDescriptor(
                     Collections.<Attribute>emptyList(),
@@ -73,6 +74,42 @@ public class JetStandardClasses {
         }
     }
 
+    public static final int FUNCTION_COUNT = 22;
+    private static final ClassDescriptor[] FUNCTION = new ClassDescriptor[FUNCTION_COUNT];
+    private static final ClassDescriptor[] RECEIVER_FUNCTION = new ClassDescriptor[FUNCTION_COUNT];
+    static {
+        for (int i = 0; i < FUNCTION_COUNT; i++) {
+            List<TypeParameterDescriptor> parameters = new ArrayList<TypeParameterDescriptor>();
+            for (int j = 0; j < i; j++) {
+                parameters.add(new TypeParameterDescriptor(
+                        Collections.<Attribute>emptyList(),
+                        Variance.IN_VARIANCE, "P" + j,
+                        Collections.singleton(getNullableAnyType())));
+            }
+            parameters.add(new TypeParameterDescriptor(
+                        Collections.<Attribute>emptyList(),
+                        Variance.OUT_VARIANCE, "R",
+                        Collections.singleton(getNullableAnyType())));
+            FUNCTION[i] = new ClassDescriptor(
+                    Collections.<Attribute>emptyList(),
+                    false,
+                    "Function" + i,
+                    parameters,
+                    Collections.singleton(JetStandardClasses.getAnyType()));
+            parameters.add(0, new TypeParameterDescriptor(
+                        Collections.<Attribute>emptyList(),
+                        Variance.IN_VARIANCE, "T",
+                        Collections.singleton(getNullableAnyType())));
+            RECEIVER_FUNCTION[i] = new ClassDescriptor(
+                    Collections.<Attribute>emptyList(),
+                    false,
+                    "ReceiverFunction" + i,
+                    parameters,
+                    Collections.singleton(JetStandardClasses.getAnyType()));
+        }
+    }
+
+
     public static final TypeMemberDomain STUB = new TypeMemberDomain() {
         @Override
         public ClassDescriptor getClassDescriptor(@NotNull Type type) {
@@ -259,4 +296,23 @@ public class JetStandardClasses {
         }
         return result;
     }
+
+    // TODO : labeled version?
+    public static Type getFunctionType(List<Attribute> attributes, @Nullable Type receiverType, @NotNull List<Type> parameterTypes, @NotNull Type returnType) {
+        List<TypeProjection> arguments = new ArrayList<TypeProjection>();
+        if (receiverType != null) {
+            arguments.add(defaultProjection(receiverType));
+        }
+        for (Type parameterType : parameterTypes) {
+            arguments.add(defaultProjection(parameterType));
+        }
+        arguments.add(defaultProjection(returnType));
+        int size = parameterTypes.size();
+        TypeConstructor constructor = receiverType == null ? FUNCTION[size].getTypeConstructor() : RECEIVER_FUNCTION[size].getTypeConstructor();
+        return new TypeImpl(attributes, constructor, false, arguments, STUB);
+    }
+
+    private static TypeProjection defaultProjection(Type returnType) {
+        return new TypeProjection(Variance.INVARIANT, returnType);
+    }
 }
diff --git a/idea/src/org/jetbrains/jet/lang/types/JetTypeChecker.java b/idea/src/org/jetbrains/jet/lang/types/JetTypeChecker.java
index f5ceb45ac05..5cfb87342b2 100644
--- a/idea/src/org/jetbrains/jet/lang/types/JetTypeChecker.java
+++ b/idea/src/org/jetbrains/jet/lang/types/JetTypeChecker.java
@@ -5,7 +5,9 @@ import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 import org.jetbrains.jet.JetNodeTypes;
 import org.jetbrains.jet.lang.psi.*;
+import org.jetbrains.jet.lang.resolve.ClassDescriptorResolver;
 import org.jetbrains.jet.lang.resolve.JetScope;
+import org.jetbrains.jet.lang.resolve.JetScopeAdapter;
 import org.jetbrains.jet.lang.resolve.TypeResolver;
 import org.jetbrains.jet.lexer.JetTokens;
 
@@ -34,6 +36,65 @@ public class JetTypeChecker {
     public Type getType(@NotNull final JetScope scope, @NotNull JetExpression expression) {
         final Type[] result = new Type[1];
         expression.accept(new JetVisitor() {
+            @Override
+            public void visitReferenceExpression(JetReferenceExpression expression) {
+                // TODO : other members
+                // TODO : type substitutions???
+                PropertyDescriptor property = scope.getProperty(expression.getReferencedName());
+                if (property != null) {
+                    result[0] = property.getType();
+                }
+            }
+
+            @Override
+            public void visitFunctionLiteralExpression(JetFunctionLiteralExpression expression) {
+                JetTypeReference returnTypeRef = expression.getReturnTypeRef();
+
+                JetTypeReference receiverTypeRef = expression.getReceiverTypeRef();
+                final Type thisType;
+                if (receiverTypeRef != null) {
+                    thisType = TypeResolver.INSTANCE.resolveType(scope, receiverTypeRef);
+                } else {
+                    thisType = scope.getThisType();
+                }
+
+                List<JetExpression> body = expression.getBody();
+                final Map<String, PropertyDescriptor> parameterDescriptors = new HashMap<String, PropertyDescriptor>();
+                List<Type> parameterTypes = new ArrayList<Type>();
+                for (JetParameter parameter : expression.getParameters()) {
+                    JetTypeReference typeReference = parameter.getTypeReference();
+                    if (typeReference == null) {
+                        throw new UnsupportedOperationException("Type inference for parameters is not implemented yet");
+                    }
+                    PropertyDescriptor propertyDescriptor = ClassDescriptorResolver.INSTANCE.resolvePropertyDescriptor(scope, parameter);
+                    parameterDescriptors.put(parameter.getName(), propertyDescriptor);
+                    parameterTypes.add(propertyDescriptor.getType());
+                }
+                Type returnType;
+                if (returnTypeRef != null) {
+                    returnType = TypeResolver.INSTANCE.resolveType(scope, returnTypeRef);
+                } else if (body.isEmpty()) {
+                    returnType = JetStandardClasses.getUnitType();
+                } else {
+                    returnType = getType(new JetScopeAdapter(scope) {
+                        @Override
+                        public Type getThisType() {
+                            return thisType;
+                        }
+
+                        @Override
+                        public PropertyDescriptor getProperty(String name) {
+                            PropertyDescriptor propertyDescriptor = parameterDescriptors.get(name);
+                            if (propertyDescriptor == null) {
+                                return super.getProperty(name);
+                            }
+                            return propertyDescriptor;
+                        }
+                    }, body.get(body.size() - 1));
+                }
+                result[0] = JetStandardClasses.getFunctionType(null, receiverTypeRef == null ? null : thisType, parameterTypes, returnType);
+            }
+
             @Override
             public void visitParenthesizedExpression(JetParenthesizedExpression expression) {
                 result[0] = getType(scope, expression.getExpression());
diff --git a/idea/src/org/jetbrains/jet/lang/types/PropertyDescriptor.java b/idea/src/org/jetbrains/jet/lang/types/PropertyDescriptor.java
index de10e3328bf..eddcd3d6b04 100644
--- a/idea/src/org/jetbrains/jet/lang/types/PropertyDescriptor.java
+++ b/idea/src/org/jetbrains/jet/lang/types/PropertyDescriptor.java
@@ -1,7 +1,23 @@
 package org.jetbrains.jet.lang.types;
 
+import java.util.List;
+
 /**
  * @author abreslav
  */
-public class PropertyDescriptor {
+public class PropertyDescriptor extends MemberDescriptorImpl {
+    private Type type;
+
+    public PropertyDescriptor(List<Attribute> attributes, String name, Type type) {
+        super(attributes, name);
+        this.type = type;
+    }
+
+    public PropertyDescriptor(List<Attribute> attributes, String name) {
+        this(attributes, name, null);
+    }
+
+    public Type getType() {
+        return type;
+    }
 }
diff --git a/idea/src/org/jetbrains/jet/lang/types/TypeConstructor.java b/idea/src/org/jetbrains/jet/lang/types/TypeConstructor.java
index 2ca7a263396..d4d5408f66a 100644
--- a/idea/src/org/jetbrains/jet/lang/types/TypeConstructor.java
+++ b/idea/src/org/jetbrains/jet/lang/types/TypeConstructor.java
@@ -1,5 +1,6 @@
 package org.jetbrains.jet.lang.types;
 
+import java.util.ArrayList;
 import java.util.Collection;
 import java.util.List;
 
@@ -16,7 +17,7 @@ public class TypeConstructor extends AnnotatedImpl {
         super(attributes);
         this.sealed = sealed;
         this.debugName = debugName;
-        this.parameters = parameters;
+        this.parameters = new ArrayList<TypeParameterDescriptor>(parameters);
         this.supertypes = supertypes;
     }
 
diff --git a/idea/testData/psi/FunctionTypes.txt b/idea/testData/psi/FunctionTypes.txt
index 90237c3bf3a..c65245e55b8 100644
--- a/idea/testData/psi/FunctionTypes.txt
+++ b/idea/testData/psi/FunctionTypes.txt
@@ -14,20 +14,21 @@ JetFile: FunctionTypes.jet
           PsiElement(LBRACE)('{')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            MODIFIER_LIST
-              ATTRIBUTE_ANNOTATION
-                PsiElement(LBRACKET)('[')
-                ATTRIBUTE
-                  TYPE_REFERENCE
-                    USER_TYPE
-                      REFERENCE_EXPRESSION
-                        PsiElement(IDENTIFIER)('a')
-                PsiElement(RBRACKET)(']')
-            PsiWhiteSpace(' ')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('a')
+            VALUE_PARAMETER
+              MODIFIER_LIST
+                ATTRIBUTE_ANNOTATION
+                  PsiElement(LBRACKET)('[')
+                  ATTRIBUTE
+                    TYPE_REFERENCE
+                      USER_TYPE
+                        REFERENCE_EXPRESSION
+                          PsiElement(IDENTIFIER)('a')
+                  PsiElement(RBRACKET)(']')
+              PsiWhiteSpace(' ')
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('a')
             PsiElement(RPAR)(')')
           PsiWhiteSpace(' ')
           PsiElement(COLON)(':')
@@ -52,10 +53,11 @@ JetFile: FunctionTypes.jet
           PsiElement(LBRACE)('{')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('a')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('a')
             PsiElement(RPAR)(')')
           PsiWhiteSpace(' ')
           PsiElement(COLON)(':')
@@ -280,10 +282,11 @@ JetFile: FunctionTypes.jet
                     PsiElement(IDENTIFIER)('a')
             PsiElement(COMMA)(',')
             PsiWhiteSpace(' ')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('foo')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('foo')
             PsiElement(COMMA)(',')
             PsiWhiteSpace(' ')
             VALUE_PARAMETER
@@ -319,10 +322,11 @@ JetFile: FunctionTypes.jet
           PsiElement(LBRACE)('{')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('foo')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('foo')
             PsiElement(COMMA)(',')
             PsiWhiteSpace(' ')
             VALUE_PARAMETER
@@ -358,10 +362,11 @@ JetFile: FunctionTypes.jet
           PsiElement(LBRACE)('{')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('foo')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('foo')
             PsiElement(COMMA)(',')
             PsiWhiteSpace(' ')
             VALUE_PARAMETER
@@ -374,10 +379,11 @@ JetFile: FunctionTypes.jet
                   PsiElement(LBRACE)('{')
                   VALUE_PARAMETER_LIST
                     PsiElement(LPAR)('(')
-                    TYPE_REFERENCE
-                      USER_TYPE
-                        REFERENCE_EXPRESSION
-                          PsiElement(IDENTIFIER)('a')
+                    VALUE_PARAMETER
+                      TYPE_REFERENCE
+                        USER_TYPE
+                          REFERENCE_EXPRESSION
+                            PsiElement(IDENTIFIER)('a')
                     PsiElement(RPAR)(')')
                   PsiWhiteSpace(' ')
                   PsiElement(COLON)(':')
@@ -411,10 +417,11 @@ JetFile: FunctionTypes.jet
           PsiElement(LBRACE)('{')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('foo')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('foo')
             PsiElement(COMMA)(',')
             PsiWhiteSpace(' ')
             VALUE_PARAMETER
@@ -427,10 +434,11 @@ JetFile: FunctionTypes.jet
                   PsiElement(LBRACE)('{')
                   VALUE_PARAMETER_LIST
                     PsiElement(LPAR)('(')
-                    TYPE_REFERENCE
-                      USER_TYPE
-                        REFERENCE_EXPRESSION
-                          PsiElement(IDENTIFIER)('a')
+                    VALUE_PARAMETER
+                      TYPE_REFERENCE
+                        USER_TYPE
+                          REFERENCE_EXPRESSION
+                            PsiElement(IDENTIFIER)('a')
                     PsiElement(RPAR)(')')
                   PsiWhiteSpace(' ')
                   PsiElement(COLON)(':')
@@ -474,13 +482,14 @@ JetFile: FunctionTypes.jet
           PsiElement(LBRACE)('{')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            MODIFIER_LIST
-              PsiElement(ref)('ref')
-            PsiWhiteSpace(' ')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('foo')
+            VALUE_PARAMETER
+              MODIFIER_LIST
+                PsiElement(ref)('ref')
+              PsiWhiteSpace(' ')
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('foo')
             PsiElement(COMMA)(',')
             PsiWhiteSpace(' ')
             VALUE_PARAMETER
@@ -496,13 +505,14 @@ JetFile: FunctionTypes.jet
                   PsiElement(LBRACE)('{')
                   VALUE_PARAMETER_LIST
                     PsiElement(LPAR)('(')
-                    MODIFIER_LIST
-                      PsiElement(ref)('ref')
-                    PsiWhiteSpace(' ')
-                    TYPE_REFERENCE
-                      USER_TYPE
-                        REFERENCE_EXPRESSION
-                          PsiElement(IDENTIFIER)('a')
+                    VALUE_PARAMETER
+                      MODIFIER_LIST
+                        PsiElement(ref)('ref')
+                      PsiWhiteSpace(' ')
+                      TYPE_REFERENCE
+                        USER_TYPE
+                          REFERENCE_EXPRESSION
+                            PsiElement(IDENTIFIER)('a')
                     PsiElement(RPAR)(')')
                   PsiWhiteSpace(' ')
                   PsiElement(COLON)(':')
diff --git a/idea/testData/psi/FunctionTypes_ERR.txt b/idea/testData/psi/FunctionTypes_ERR.txt
index 7837897e8fb..454009ee99d 100644
--- a/idea/testData/psi/FunctionTypes_ERR.txt
+++ b/idea/testData/psi/FunctionTypes_ERR.txt
@@ -14,20 +14,21 @@ JetFile: FunctionTypes_ERR.jet
           PsiElement(LBRACE)('{')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            MODIFIER_LIST
-              ATTRIBUTE_ANNOTATION
-                PsiElement(LBRACKET)('[')
-                ATTRIBUTE
-                  TYPE_REFERENCE
-                    USER_TYPE
-                      REFERENCE_EXPRESSION
-                        PsiElement(IDENTIFIER)('a')
-                PsiElement(RBRACKET)(']')
-            PsiWhiteSpace(' ')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('a')
+            VALUE_PARAMETER
+              MODIFIER_LIST
+                ATTRIBUTE_ANNOTATION
+                  PsiElement(LBRACKET)('[')
+                  ATTRIBUTE
+                    TYPE_REFERENCE
+                      USER_TYPE
+                        REFERENCE_EXPRESSION
+                          PsiElement(IDENTIFIER)('a')
+                  PsiElement(RBRACKET)(']')
+              PsiWhiteSpace(' ')
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('a')
             PsiElement(RPAR)(')')
           PsiErrorElement:Expecting ':' followed by a return type
             <empty list>
@@ -52,10 +53,11 @@ JetFile: FunctionTypes_ERR.jet
           PsiElement(LBRACE)('{')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('a')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('a')
             PsiElement(COMMA)(',')
             PsiErrorElement:Expecting a parameter declaration
               <empty list>
diff --git a/idea/testData/psi/Functions.txt b/idea/testData/psi/Functions.txt
index a7d98faf586..e114ec07777 100644
--- a/idea/testData/psi/Functions.txt
+++ b/idea/testData/psi/Functions.txt
@@ -83,18 +83,19 @@ JetFile: Functions.jet
           PsiElement(DOT)('.')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('A')
-                TYPE_ARGUMENT_LIST
-                  PsiElement(LT)('<')
-                  TYPE_PROJECTION
-                    TYPE_REFERENCE
-                      USER_TYPE
-                        REFERENCE_EXPRESSION
-                          PsiElement(IDENTIFIER)('B')
-                  PsiElement(GT)('>')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('A')
+                  TYPE_ARGUMENT_LIST
+                    PsiElement(LT)('<')
+                    TYPE_PROJECTION
+                      TYPE_REFERENCE
+                        USER_TYPE
+                          REFERENCE_EXPRESSION
+                            PsiElement(IDENTIFIER)('B')
+                    PsiElement(GT)('>')
             PsiElement(RPAR)(')')
           PsiWhiteSpace(' ')
           PsiElement(COLON)(':')
@@ -185,10 +186,11 @@ JetFile: Functions.jet
               PsiElement(LBRACE)('{')
               VALUE_PARAMETER_LIST
                 PsiElement(LPAR)('(')
-                TYPE_REFERENCE
-                  USER_TYPE
-                    REFERENCE_EXPRESSION
-                      PsiElement(IDENTIFIER)('a')
+                VALUE_PARAMETER
+                  TYPE_REFERENCE
+                    USER_TYPE
+                      REFERENCE_EXPRESSION
+                        PsiElement(IDENTIFIER)('a')
                 PsiElement(RPAR)(')')
               PsiWhiteSpace(' ')
               PsiElement(COLON)(':')
@@ -305,18 +307,19 @@ JetFile: Functions.jet
           PsiElement(DOT)('.')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('A')
-                TYPE_ARGUMENT_LIST
-                  PsiElement(LT)('<')
-                  TYPE_PROJECTION
-                    TYPE_REFERENCE
-                      USER_TYPE
-                        REFERENCE_EXPRESSION
-                          PsiElement(IDENTIFIER)('B')
-                  PsiElement(GT)('>')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('A')
+                  TYPE_ARGUMENT_LIST
+                    PsiElement(LT)('<')
+                    TYPE_PROJECTION
+                      TYPE_REFERENCE
+                        USER_TYPE
+                          REFERENCE_EXPRESSION
+                            PsiElement(IDENTIFIER)('B')
+                    PsiElement(GT)('>')
             PsiElement(RPAR)(')')
           PsiWhiteSpace(' ')
           PsiElement(COLON)(':')
@@ -409,10 +412,11 @@ JetFile: Functions.jet
               PsiElement(LBRACE)('{')
               VALUE_PARAMETER_LIST
                 PsiElement(LPAR)('(')
-                TYPE_REFERENCE
-                  USER_TYPE
-                    REFERENCE_EXPRESSION
-                      PsiElement(IDENTIFIER)('a')
+                VALUE_PARAMETER
+                  TYPE_REFERENCE
+                    USER_TYPE
+                      REFERENCE_EXPRESSION
+                        PsiElement(IDENTIFIER)('a')
                 PsiElement(RPAR)(')')
               PsiWhiteSpace(' ')
               PsiElement(COLON)(':')
@@ -539,18 +543,19 @@ JetFile: Functions.jet
           PsiElement(DOT)('.')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('A')
-                TYPE_ARGUMENT_LIST
-                  PsiElement(LT)('<')
-                  TYPE_PROJECTION
-                    TYPE_REFERENCE
-                      USER_TYPE
-                        REFERENCE_EXPRESSION
-                          PsiElement(IDENTIFIER)('B')
-                  PsiElement(GT)('>')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('A')
+                  TYPE_ARGUMENT_LIST
+                    PsiElement(LT)('<')
+                    TYPE_PROJECTION
+                      TYPE_REFERENCE
+                        USER_TYPE
+                          REFERENCE_EXPRESSION
+                            PsiElement(IDENTIFIER)('B')
+                    PsiElement(GT)('>')
             PsiElement(RPAR)(')')
           PsiWhiteSpace(' ')
           PsiElement(COLON)(':')
@@ -649,10 +654,11 @@ JetFile: Functions.jet
               PsiElement(LBRACE)('{')
               VALUE_PARAMETER_LIST
                 PsiElement(LPAR)('(')
-                TYPE_REFERENCE
-                  USER_TYPE
-                    REFERENCE_EXPRESSION
-                      PsiElement(IDENTIFIER)('a')
+                VALUE_PARAMETER
+                  TYPE_REFERENCE
+                    USER_TYPE
+                      REFERENCE_EXPRESSION
+                        PsiElement(IDENTIFIER)('a')
                 PsiElement(RPAR)(')')
               PsiWhiteSpace(' ')
               PsiElement(COLON)(':')
@@ -726,18 +732,19 @@ JetFile: Functions.jet
           PsiElement(DOT)('.')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('A')
-                TYPE_ARGUMENT_LIST
-                  PsiElement(LT)('<')
-                  TYPE_PROJECTION
-                    TYPE_REFERENCE
-                      USER_TYPE
-                        REFERENCE_EXPRESSION
-                          PsiElement(IDENTIFIER)('B')
-                  PsiElement(GT)('>')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('A')
+                  TYPE_ARGUMENT_LIST
+                    PsiElement(LT)('<')
+                    TYPE_PROJECTION
+                      TYPE_REFERENCE
+                        USER_TYPE
+                          REFERENCE_EXPRESSION
+                            PsiElement(IDENTIFIER)('B')
+                    PsiElement(GT)('>')
             PsiElement(RPAR)(')')
           PsiWhiteSpace(' ')
           PsiElement(COLON)(':')
@@ -801,10 +808,11 @@ JetFile: Functions.jet
               PsiElement(LBRACE)('{')
               VALUE_PARAMETER_LIST
                 PsiElement(LPAR)('(')
-                TYPE_REFERENCE
-                  USER_TYPE
-                    REFERENCE_EXPRESSION
-                      PsiElement(IDENTIFIER)('a')
+                VALUE_PARAMETER
+                  TYPE_REFERENCE
+                    USER_TYPE
+                      REFERENCE_EXPRESSION
+                        PsiElement(IDENTIFIER)('a')
                 PsiElement(RPAR)(')')
               PsiWhiteSpace(' ')
               PsiElement(COLON)(':')
diff --git a/idea/testData/psi/Functions_ERR.txt b/idea/testData/psi/Functions_ERR.txt
index a036db94587..7846fa530be 100644
--- a/idea/testData/psi/Functions_ERR.txt
+++ b/idea/testData/psi/Functions_ERR.txt
@@ -109,10 +109,11 @@ JetFile: Functions_ERR.jet
               PsiElement(LBRACE)('{')
               VALUE_PARAMETER_LIST
                 PsiElement(LPAR)('(')
-                TYPE_REFERENCE
-                  USER_TYPE
-                    REFERENCE_EXPRESSION
-                      PsiElement(IDENTIFIER)('a')
+                VALUE_PARAMETER
+                  TYPE_REFERENCE
+                    USER_TYPE
+                      REFERENCE_EXPRESSION
+                        PsiElement(IDENTIFIER)('a')
                 PsiElement(RPAR)(')')
               PsiWhiteSpace(' ')
               PsiElement(COLON)(':')
@@ -416,18 +417,19 @@ JetFile: Functions_ERR.jet
           PsiElement(DOT)('.')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('A')
-                TYPE_ARGUMENT_LIST
-                  PsiElement(LT)('<')
-                  TYPE_PROJECTION
-                    TYPE_REFERENCE
-                      USER_TYPE
-                        REFERENCE_EXPRESSION
-                          PsiElement(IDENTIFIER)('B')
-                  PsiElement(GT)('>')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('A')
+                  TYPE_ARGUMENT_LIST
+                    PsiElement(LT)('<')
+                    TYPE_PROJECTION
+                      TYPE_REFERENCE
+                        USER_TYPE
+                          REFERENCE_EXPRESSION
+                            PsiElement(IDENTIFIER)('B')
+                    PsiElement(GT)('>')
             PsiElement(RPAR)(')')
           PsiWhiteSpace(' ')
           PsiElement(COLON)(':')
diff --git a/idea/testData/psi/When.txt b/idea/testData/psi/When.txt
index ad3df326c9b..e75b2d4e637 100644
--- a/idea/testData/psi/When.txt
+++ b/idea/testData/psi/When.txt
@@ -746,10 +746,11 @@ JetFile: When.jet
                     PsiElement(LBRACE)('{')
                     VALUE_PARAMETER_LIST
                       PsiElement(LPAR)('(')
-                      TYPE_REFERENCE
-                        USER_TYPE
-                          REFERENCE_EXPRESSION
-                            PsiElement(IDENTIFIER)('foo')
+                      VALUE_PARAMETER
+                        TYPE_REFERENCE
+                          USER_TYPE
+                            REFERENCE_EXPRESSION
+                              PsiElement(IDENTIFIER)('foo')
                       PsiElement(RPAR)(')')
                     PsiWhiteSpace(' ')
                     PsiElement(COLON)(':')
diff --git a/idea/testData/psi/examples/FunctionsAndTypes.txt b/idea/testData/psi/examples/FunctionsAndTypes.txt
index c18937fb4f3..04d65ce6475 100644
--- a/idea/testData/psi/examples/FunctionsAndTypes.txt
+++ b/idea/testData/psi/examples/FunctionsAndTypes.txt
@@ -14,10 +14,11 @@ JetFile: FunctionsAndTypes.jet
           PsiElement(LBRACE)('{')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('T')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('T')
             PsiElement(RPAR)(')')
           PsiWhiteSpace(' ')
           PsiElement(COLON)(':')
@@ -44,16 +45,18 @@ JetFile: FunctionsAndTypes.jet
           PsiElement(LBRACE)('{')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('T')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('T')
             PsiElement(COMMA)(',')
             PsiWhiteSpace(' ')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('E')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('E')
             PsiElement(RPAR)(')')
           PsiWhiteSpace(' ')
           PsiElement(COLON)(':')
@@ -80,20 +83,21 @@ JetFile: FunctionsAndTypes.jet
           PsiElement(LBRACE)('{')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            TYPE_REFERENCE
-              TUPLE_TYPE
-                PsiElement(LPAR)('(')
-                TYPE_REFERENCE
-                  USER_TYPE
-                    REFERENCE_EXPRESSION
-                      PsiElement(IDENTIFIER)('T')
-                PsiElement(COMMA)(',')
-                PsiWhiteSpace(' ')
-                TYPE_REFERENCE
-                  USER_TYPE
-                    REFERENCE_EXPRESSION
-                      PsiElement(IDENTIFIER)('E')
-                PsiElement(RPAR)(')')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                TUPLE_TYPE
+                  PsiElement(LPAR)('(')
+                  TYPE_REFERENCE
+                    USER_TYPE
+                      REFERENCE_EXPRESSION
+                        PsiElement(IDENTIFIER)('T')
+                  PsiElement(COMMA)(',')
+                  PsiWhiteSpace(' ')
+                  TYPE_REFERENCE
+                    USER_TYPE
+                      REFERENCE_EXPRESSION
+                        PsiElement(IDENTIFIER)('E')
+                  PsiElement(RPAR)(')')
             PsiElement(RPAR)(')')
           PsiWhiteSpace(' ')
           PsiElement(COLON)(':')
@@ -121,10 +125,11 @@ JetFile: FunctionsAndTypes.jet
           PsiWhiteSpace(' ')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('X')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('X')
             PsiElement(RPAR)(')')
           PsiWhiteSpace(' ')
           PsiElement(COLON)(':')
@@ -134,10 +139,11 @@ JetFile: FunctionsAndTypes.jet
               PsiElement(LBRACE)('{')
               VALUE_PARAMETER_LIST
                 PsiElement(LPAR)('(')
-                TYPE_REFERENCE
-                  USER_TYPE
-                    REFERENCE_EXPRESSION
-                      PsiElement(IDENTIFIER)('T')
+                VALUE_PARAMETER
+                  TYPE_REFERENCE
+                    USER_TYPE
+                      REFERENCE_EXPRESSION
+                        PsiElement(IDENTIFIER)('T')
                 PsiElement(RPAR)(')')
               PsiWhiteSpace(' ')
               PsiElement(COLON)(':')
@@ -167,24 +173,26 @@ JetFile: FunctionsAndTypes.jet
           PsiWhiteSpace(' ')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            TYPE_REFERENCE
-              FUNCTION_TYPE
-                PsiElement(LBRACE)('{')
-                VALUE_PARAMETER_LIST
-                  PsiElement(LPAR)('(')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                FUNCTION_TYPE
+                  PsiElement(LBRACE)('{')
+                  VALUE_PARAMETER_LIST
+                    PsiElement(LPAR)('(')
+                    VALUE_PARAMETER
+                      TYPE_REFERENCE
+                        USER_TYPE
+                          REFERENCE_EXPRESSION
+                            PsiElement(IDENTIFIER)('X')
+                    PsiElement(RPAR)(')')
+                  PsiWhiteSpace(' ')
+                  PsiElement(COLON)(':')
+                  PsiWhiteSpace(' ')
                   TYPE_REFERENCE
                     USER_TYPE
                       REFERENCE_EXPRESSION
-                        PsiElement(IDENTIFIER)('X')
-                  PsiElement(RPAR)(')')
-                PsiWhiteSpace(' ')
-                PsiElement(COLON)(':')
-                PsiWhiteSpace(' ')
-                TYPE_REFERENCE
-                  USER_TYPE
-                    REFERENCE_EXPRESSION
-                      PsiElement(IDENTIFIER)('Y')
-                PsiElement(RBRACE)('}')
+                        PsiElement(IDENTIFIER)('Y')
+                  PsiElement(RBRACE)('}')
             PsiElement(RPAR)(')')
           PsiWhiteSpace(' ')
           PsiElement(COLON)(':')
@@ -194,10 +202,11 @@ JetFile: FunctionsAndTypes.jet
               PsiElement(LBRACE)('{')
               VALUE_PARAMETER_LIST
                 PsiElement(LPAR)('(')
-                TYPE_REFERENCE
-                  USER_TYPE
-                    REFERENCE_EXPRESSION
-                      PsiElement(IDENTIFIER)('Y')
+                VALUE_PARAMETER
+                  TYPE_REFERENCE
+                    USER_TYPE
+                      REFERENCE_EXPRESSION
+                        PsiElement(IDENTIFIER)('Y')
                 PsiElement(RPAR)(')')
               PsiWhiteSpace(' ')
               PsiElement(COLON)(':')
@@ -643,10 +652,11 @@ JetFile: FunctionsAndTypes.jet
           PsiElement(LBRACE)('{')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('T')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('T')
             PsiElement(RPAR)(')')
           PsiWhiteSpace(' ')
           PsiElement(COLON)(':')
diff --git a/idea/testData/psi/examples/Graph.txt b/idea/testData/psi/examples/Graph.txt
index b93472549d9..a49150b0b73 100644
--- a/idea/testData/psi/examples/Graph.txt
+++ b/idea/testData/psi/examples/Graph.txt
@@ -494,10 +494,11 @@ JetFile: Graph.jet
                   PsiElement(LBRACE)('{')
                   VALUE_PARAMETER_LIST
                     PsiElement(LPAR)('(')
-                    TYPE_REFERENCE
-                      USER_TYPE
-                        REFERENCE_EXPRESSION
-                          PsiElement(IDENTIFIER)('V')
+                    VALUE_PARAMETER
+                      TYPE_REFERENCE
+                        USER_TYPE
+                          REFERENCE_EXPRESSION
+                            PsiElement(IDENTIFIER)('V')
                     PsiElement(RPAR)(')')
                   PsiWhiteSpace(' ')
                   PsiElement(COLON)(':')
@@ -641,10 +642,11 @@ JetFile: Graph.jet
                       PsiElement(LBRACE)('{')
                       VALUE_PARAMETER_LIST
                         PsiElement(LPAR)('(')
-                        TYPE_REFERENCE
-                          USER_TYPE
-                            REFERENCE_EXPRESSION
-                              PsiElement(IDENTIFIER)('V')
+                        VALUE_PARAMETER
+                          TYPE_REFERENCE
+                            USER_TYPE
+                              REFERENCE_EXPRESSION
+                                PsiElement(IDENTIFIER)('V')
                         PsiElement(RPAR)(')')
                       PsiWhiteSpace(' ')
                       PsiElement(COLON)(':')
@@ -812,10 +814,11 @@ JetFile: Graph.jet
                   PsiElement(LBRACE)('{')
                   VALUE_PARAMETER_LIST
                     PsiElement(LPAR)('(')
-                    TYPE_REFERENCE
-                      USER_TYPE
-                        REFERENCE_EXPRESSION
-                          PsiElement(IDENTIFIER)('V')
+                    VALUE_PARAMETER
+                      TYPE_REFERENCE
+                        USER_TYPE
+                          REFERENCE_EXPRESSION
+                            PsiElement(IDENTIFIER)('V')
                     PsiElement(RPAR)(')')
                   PsiWhiteSpace(' ')
                   PsiElement(COLON)(':')
diff --git a/idea/testData/psi/examples/PolymorphicClassObjects.txt b/idea/testData/psi/examples/PolymorphicClassObjects.txt
index 69b20bb7424..4b3ed00c572 100644
--- a/idea/testData/psi/examples/PolymorphicClassObjects.txt
+++ b/idea/testData/psi/examples/PolymorphicClassObjects.txt
@@ -299,10 +299,11 @@ JetFile: PolymorphicClassObjects.jet
                   PsiElement(LBRACE)('{')
                   VALUE_PARAMETER_LIST
                     PsiElement(LPAR)('(')
-                    TYPE_REFERENCE
-                      USER_TYPE
-                        REFERENCE_EXPRESSION
-                          PsiElement(IDENTIFIER)('E')
+                    VALUE_PARAMETER
+                      TYPE_REFERENCE
+                        USER_TYPE
+                          REFERENCE_EXPRESSION
+                            PsiElement(IDENTIFIER)('E')
                     PsiElement(RPAR)(')')
                   PsiWhiteSpace(' ')
                   PsiElement(COLON)(':')
diff --git a/idea/testData/psi/examples/util/Comparison.txt b/idea/testData/psi/examples/util/Comparison.txt
index 1cf766c984d..17b612fe76f 100644
--- a/idea/testData/psi/examples/util/Comparison.txt
+++ b/idea/testData/psi/examples/util/Comparison.txt
@@ -20,16 +20,18 @@ JetFile: Comparison.jet
           PsiElement(LBRACE)('{')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('T')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('T')
             PsiElement(COMMA)(',')
             PsiWhiteSpace(' ')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('T')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('T')
             PsiElement(RPAR)(')')
           PsiWhiteSpace(' ')
           PsiElement(COLON)(':')
@@ -254,16 +256,18 @@ JetFile: Comparison.jet
           PsiElement(LBRACE)('{')
           VALUE_PARAMETER_LIST
             PsiElement(LPAR)('(')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('T')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('T')
             PsiElement(COMMA)(',')
             PsiWhiteSpace(' ')
-            TYPE_REFERENCE
-              USER_TYPE
-                REFERENCE_EXPRESSION
-                  PsiElement(IDENTIFIER)('T')
+            VALUE_PARAMETER
+              TYPE_REFERENCE
+                USER_TYPE
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('T')
             PsiElement(RPAR)(')')
           PsiWhiteSpace(' ')
           PsiElement(COLON)(':')
diff --git a/idea/tests/org/jetbrains/jet/types/JetTypeCheckerTest.java b/idea/tests/org/jetbrains/jet/types/JetTypeCheckerTest.java
index 94010565f52..7d32f7033da 100644
--- a/idea/tests/org/jetbrains/jet/types/JetTypeCheckerTest.java
+++ b/idea/tests/org/jetbrains/jet/types/JetTypeCheckerTest.java
@@ -274,6 +274,28 @@ public class JetTypeCheckerTest extends LightDaemonAnalyzerTestCase {
         assertType("for (i in 1) {1}", "Unit");
     }
 
+    public void testFunctionLiterals() throws Exception {
+        assertType("{() => }", "{() : Unit}");
+        assertType("{() : Int => }", "{() : Int}");
+        assertType("{() => 1}", "{() : Int}");
+
+        assertType("{(a : Int) => 1}", "{(a : Int) : Int}");
+        assertType("{(a : Int, b : String) => 1}", "{(a : Int, b : String) : Int}");
+
+        assertType("{(a : Int) => 1}", "{(Int) : Int}");
+        assertType("{(a : Int, b : String) => 1}", "{(Int, String) : Int}");
+
+        assertType("{Any.() => 1}", "{Any.() : Int}");
+
+        assertType("{Any.(a : Int) => 1}", "{Any.(a : Int) : Int}");
+        assertType("{Any.(a : Int, b : String) => 1}", "{Any.(a : Int, b : String) : Int}");
+
+        assertType("{Any.(a : Int) => 1}", "{Any.(Int) : Int}");
+        assertType("{Any.(a : Int, b : String) => 1}", "{Any.(Int, String) : Int}");
+
+        assertType("{Any.(a : Int, b : String) => b}", "{Any.(Int, String) : String}");
+    }
+
     public void testImplicitConversions() throws Exception {
         assertConvertibleTo("1", JetStandardClasses.getByteType());
     }