diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 906074ccc70..3fba12bf66c 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -942,10 +942,13 @@ module ts {
                     writeTypeofSymbol(type);
                 }
                 // Use 'typeof T' for types of functions and methods that circularly reference themselves
-                // TODO(shkamat): correct the usuage of typeof function - always on functions that are visible
-                else if (type.symbol && type.symbol.flags & (SymbolFlags.Function | SymbolFlags.Method) && typeStack && contains(typeStack, type)) {
+                else if (shouldWriteTypeOfFunctionSymbol()) {
                     writeTypeofSymbol(type);
                 }
+                else if (typeStack && contains(typeStack, type)) {
+                    // Recursive usage, use any
+                    writer.write("any");
+                }
                 else {
                     if (!typeStack) {
                         typeStack = [];
@@ -954,6 +957,23 @@ module ts {
                     writeLiteralType(type, allowFunctionOrConstructorTypeLiteral);
                     typeStack.pop();
                 }
+
+                function shouldWriteTypeOfFunctionSymbol() {
+                    if (type.symbol) {
+                        var isStaticMethodSymbol = !!(type.symbol.flags & SymbolFlags.Method &&  // typeof static method
+                            ts.forEach(type.symbol.declarations, declaration => declaration.flags & NodeFlags.Static));
+                        var isNonLocalFunctionSymbol = !!(type.symbol.flags & SymbolFlags.Function) &&
+                            (type.symbol.parent || // is exported function symbol
+                            ts.forEach(type.symbol.declarations, declaration =>
+                                declaration.parent.kind === SyntaxKind.SourceFile || declaration.parent.kind === SyntaxKind.ModuleBlock));
+
+                        if (isStaticMethodSymbol || isNonLocalFunctionSymbol) {
+                            // typeof is allowed only for static/non local functions
+                            return !!(flags & TypeFormatFlags.UseTypeOfFunction) || // use typeof if format flags specify it
+                                (typeStack && contains(typeStack, type)); // it is type of the symbol uses itself recursively
+                        }
+                    }
+                }
             }
 
             function writeTypeofSymbol(type: ObjectType) {
diff --git a/src/compiler/emitter.ts b/src/compiler/emitter.ts
index 57124e0f026..bb182e9a812 100644
--- a/src/compiler/emitter.ts
+++ b/src/compiler/emitter.ts
@@ -2160,7 +2160,7 @@ module ts {
                     if (node.constraint && (node.parent.kind !== SyntaxKind.Method || !(node.parent.flags & NodeFlags.Private))) {
                         write(" extends ");
                         getSymbolVisibilityDiagnosticMessage = getTypeParameterConstraintVisibilityError;
-                        resolver.writeTypeAtLocation(node.constraint, enclosingDeclaration, TypeFormatFlags.None, writer);
+                        resolver.writeTypeAtLocation(node.constraint, enclosingDeclaration, TypeFormatFlags.UseTypeOfFunction, writer);
                     }
                 }
 
@@ -2179,7 +2179,7 @@ module ts {
 
                 function emitTypeOfTypeReference(node: Node) {
                     getSymbolVisibilityDiagnosticMessage = getHeritageClauseVisibilityError;
-                    resolver.writeTypeAtLocation(node, enclosingDeclaration, TypeFormatFlags.WriteArrayAsGenericType, writer);
+                    resolver.writeTypeAtLocation(node, enclosingDeclaration, TypeFormatFlags.WriteArrayAsGenericType | TypeFormatFlags.UseTypeOfFunction, writer);
 
                     function getHeritageClauseVisibilityError(symbolAccesibilityResult: SymbolAccessiblityResult) {
                         var diagnosticMessage: DiagnosticMessage;
@@ -2304,7 +2304,7 @@ module ts {
                     if (!(node.flags & NodeFlags.Private)) {
                         write(": ");
                         getSymbolVisibilityDiagnosticMessage = getVariableDeclarationTypeVisibilityError;
-                        resolver.writeTypeAtLocation(node, enclosingDeclaration, TypeFormatFlags.None, writer);
+                        resolver.writeTypeAtLocation(node, enclosingDeclaration, TypeFormatFlags.UseTypeOfFunction, writer);
                     }
                 }
 
@@ -2362,7 +2362,7 @@ module ts {
                     if (!(node.flags & NodeFlags.Private)) {
                         write(": ");
                         getSymbolVisibilityDiagnosticMessage = getAccessorDeclarationTypeVisibilityError;
-                        resolver.writeTypeAtLocation(node, enclosingDeclaration, TypeFormatFlags.None, writer);
+                        resolver.writeTypeAtLocation(node, enclosingDeclaration, TypeFormatFlags.UseTypeOfFunction, writer);
                     }
                     write(";");
                     writeLine();
@@ -2459,7 +2459,7 @@ module ts {
                 if (node.kind !== SyntaxKind.Constructor && !(node.flags & NodeFlags.Private)) {
                     write(": ");
                     getSymbolVisibilityDiagnosticMessage = getReturnTypeVisibilityError;
-                    resolver.writeReturnTypeOfSignatureDeclaration(node, enclosingDeclaration, TypeFormatFlags.None, writer);
+                    resolver.writeReturnTypeOfSignatureDeclaration(node, enclosingDeclaration, TypeFormatFlags.UseTypeOfFunction, writer);
                 }
                 write(";");
                 writeLine();
@@ -2534,7 +2534,7 @@ module ts {
                 if (!(node.parent.flags & NodeFlags.Private)) {
                     write(": ");
                     getSymbolVisibilityDiagnosticMessage = getParameterDeclarationTypeVisibilityError;
-                    resolver.writeTypeAtLocation(node, enclosingDeclaration, TypeFormatFlags.None, writer);
+                    resolver.writeTypeAtLocation(node, enclosingDeclaration, TypeFormatFlags.UseTypeOfFunction, writer);
                 }
 
                 function getParameterDeclarationTypeVisibilityError(symbolAccesibilityResult: SymbolAccessiblityResult) {
diff --git a/src/compiler/types.ts b/src/compiler/types.ts
index 5e882740f1d..e507567a577 100644
--- a/src/compiler/types.ts
+++ b/src/compiler/types.ts
@@ -626,6 +626,8 @@ module ts {
 
         /** writes Array<T> instead T[]  */
         WriteArrayAsGenericType     = 0x00000001,  // Declarations
+
+        UseTypeOfFunction           = 0x00000002,  // instead of writing signature type of function use typeof
     }
 
     export enum SymbolAccessibility {
diff --git a/tests/baselines/reference/commentsClassMembers.js b/tests/baselines/reference/commentsClassMembers.js
index 23360404b5e..999ba787bd9 100644
--- a/tests/baselines/reference/commentsClassMembers.js
+++ b/tests/baselines/reference/commentsClassMembers.js
@@ -487,11 +487,11 @@ declare var i1_ncf: (b: number) => number;
 declare var i1_ncr: number;
 declare var i1_ncprop: number;
 declare var i1_s_p: number;
-declare var i1_s_f: (b: number) => number;
+declare var i1_s_f: typeof c1.s2;
 declare var i1_s_r: number;
 declare var i1_s_prop: number;
 declare var i1_s_nc_p: number;
-declare var i1_s_ncf: (b: number) => number;
+declare var i1_s_ncf: typeof c1.nc_s2;
 declare var i1_s_ncr: number;
 declare var i1_s_ncprop: number;
 declare var i1_c: typeof c1;
diff --git a/tests/baselines/reference/declFileGenericType.js b/tests/baselines/reference/declFileGenericType.js
index 2be231c1381..815b8712f15 100644
--- a/tests/baselines/reference/declFileGenericType.js
+++ b/tests/baselines/reference/declFileGenericType.js
@@ -131,10 +131,10 @@ export declare module C {
     }
 }
 export declare var a: C.A<C.B>;
-export declare var b: <T>(x: T) => C.A<C.B>;
-export declare var c: <T>(x: T) => C.A<C.B>;
-export declare var d: <T>(x: T) => C.A<C.B>[];
-export declare var e: <T extends C.A<C.B>>(x: T) => C.A<C.B>[];
+export declare var b: typeof C.F;
+export declare var c: typeof C.F2;
+export declare var d: typeof C.F3;
+export declare var e: typeof C.F4;
 export declare var x: C.A<C.B>;
 export declare function f<T extends C.A<C.B>>(): void;
 export declare var g: C.A<C.B>;
@@ -142,4 +142,4 @@ export declare class h extends C.A<C.B> {
 }
 export interface i extends C.A<C.B> {
 }
-export declare var j: <T extends C.A<C.B>>(x: T) => T;
+export declare var j: typeof C.F6;
diff --git a/tests/baselines/reference/declFileTypeofFunction.js b/tests/baselines/reference/declFileTypeofFunction.js
index 66517ca4a94..f488d418f6d 100644
--- a/tests/baselines/reference/declFileTypeofFunction.js
+++ b/tests/baselines/reference/declFileTypeofFunction.js
@@ -64,39 +64,15 @@ function foo5(x) {
 
 
 //// [declFileTypeofFunction.d.ts]
-declare function f(n: {
-    (n: typeof f): string;
-    (n: {
-        (n: typeof g): number;
-        (n: typeof f): number;
-    }): string;
-}): string;
-declare function f(n: {
-    (n: typeof g): number;
-    (n: {
-        (n: typeof f): string;
-        (n: typeof g): string;
-    }): number;
-}): string;
-declare function g(n: {
-    (n: typeof g): number;
-    (n: {
-        (n: typeof f): string;
-        (n: typeof g): string;
-    }): number;
-}): number;
-declare function g(n: {
-    (n: typeof f): string;
-    (n: {
-        (n: typeof g): number;
-        (n: typeof f): number;
-    }): string;
-}): number;
+declare function f(n: typeof f): string;
+declare function f(n: typeof g): string;
+declare function g(n: typeof g): number;
+declare function g(n: typeof f): number;
 declare var b: any;
-declare function b1(): () => typeof b1;
-declare function foo(): () => typeof foo;
-declare var foo1: () => typeof foo;
-declare var foo2: () => typeof foo;
+declare function b1(): typeof b1;
+declare function foo(): typeof foo;
+declare var foo1: typeof foo;
+declare var foo2: typeof foo;
 declare var foo3: any;
 declare var x: any;
 declare function foo5(x: number): (x: number) => number;
diff --git a/tests/baselines/reference/declarationEmit_nameConflicts.js b/tests/baselines/reference/declarationEmit_nameConflicts.js
index 70b14ad66a6..c4070db5a87 100644
--- a/tests/baselines/reference/declarationEmit_nameConflicts.js
+++ b/tests/baselines/reference/declarationEmit_nameConflicts.js
@@ -28,7 +28,6 @@ export module M.P {
         export interface I { }
     }
     export import im = M.P.f;
-    // Bug 887180: Invalid .d.ts when an aliased entity is referenced, and a different entity is closer in scope
     export var a = M.a; // emitted incorrectly as typeof f
     export var b = M.b; // ok
     export var c = M.c; // ok
@@ -170,10 +169,10 @@ export declare module M.P {
         }
     }
     export import im = M.P.f;
-    var a: () => void;
+    var a: typeof M.f;
     var b: typeof M.C;
     var c: typeof M.N;
-    var g: () => void;
+    var g: typeof c.g;
     var d: typeof M.d;
 }
 export declare module M.Q {
diff --git a/tests/baselines/reference/declarationEmit_nameConflicts2.js b/tests/baselines/reference/declarationEmit_nameConflicts2.js
index bc8ba2f63e9..79d73add32d 100644
--- a/tests/baselines/reference/declarationEmit_nameConflicts2.js
+++ b/tests/baselines/reference/declarationEmit_nameConflicts2.js
@@ -9,7 +9,6 @@ module X.Y.base {
 }
 
 module X.Y.base.Z {
-    // Bug 887180
     export var f = X.Y.base.f; // Should be base.f
     export var C = X.Y.base.C; // Should be base.C
     export var M = X.Y.base.M; // Should be base.M
@@ -72,7 +71,7 @@ declare module X.Y.base {
     }
 }
 declare module X.Y.base.Z {
-    var f: () => void;
+    var f: typeof base.f;
     var C: typeof base.C;
     var M: typeof base.M;
     var E: typeof base.E;
diff --git a/tests/baselines/reference/declarationEmit_nameConflicts3.js b/tests/baselines/reference/declarationEmit_nameConflicts3.js
index cfec6264a77..c7abf129404 100644
--- a/tests/baselines/reference/declarationEmit_nameConflicts3.js
+++ b/tests/baselines/reference/declarationEmit_nameConflicts3.js
@@ -111,7 +111,7 @@ declare module M.P {
         f = 0,
     }
     var v: M.D;
-    var w: () => void;
-    var x: () => void;
-    var x: () => void;
+    var w: typeof D.f;
+    var x: typeof C.f;
+    var x: typeof C.f;
 }
diff --git a/tests/baselines/reference/funcdecl.js b/tests/baselines/reference/funcdecl.js
index 40eb8dde17b..de080873b9f 100644
--- a/tests/baselines/reference/funcdecl.js
+++ b/tests/baselines/reference/funcdecl.js
@@ -134,29 +134,26 @@ var f2 = function () {
 
 //// [funcdecl.d.ts]
 declare function simpleFunc(): string;
-declare var simpleFuncVar: () => string;
+declare var simpleFuncVar: typeof simpleFunc;
 declare function anotherFuncNoReturn(): void;
-declare var anotherFuncNoReturnVar: () => void;
+declare var anotherFuncNoReturnVar: typeof anotherFuncNoReturn;
 declare function withReturn(): string;
-declare var withReturnVar: () => string;
+declare var withReturnVar: typeof withReturn;
 declare function withParams(a: string): string;
-declare var withparamsVar: (a: string) => string;
+declare var withparamsVar: typeof withParams;
 declare function withMultiParams(a: number, b: any, c: Object): number;
-declare var withMultiParamsVar: (a: number, b: any, c: Object) => number;
+declare var withMultiParamsVar: typeof withMultiParams;
 declare function withOptionalParams(a?: string): void;
-declare var withOptionalParamsVar: (a?: string) => void;
+declare var withOptionalParamsVar: typeof withOptionalParams;
 declare function withInitializedParams(a: string, b0: any, b?: number, c?: string): void;
-declare var withInitializedParamsVar: (a: string, b0: any, b?: number, c?: string) => void;
+declare var withInitializedParamsVar: typeof withInitializedParams;
 declare function withOptionalInitializedParams(a: string, c?: string): void;
-declare var withOptionalInitializedParamsVar: (a: string, c?: string) => void;
+declare var withOptionalInitializedParamsVar: typeof withOptionalInitializedParams;
 declare function withRestParams(a: string, ...myRestParameter: number[]): number[];
-declare var withRestParamsVar: (a: string, ...myRestParameter: number[]) => number[];
+declare var withRestParamsVar: typeof withRestParams;
 declare function overload1(n: number): string;
 declare function overload1(s: string): string;
-declare var withOverloadSignature: {
-    (n: number): string;
-    (s: string): string;
-};
+declare var withOverloadSignature: typeof overload1;
 declare function f(n: () => void): void;
 declare module m2 {
     function foo(n: () => void): void;
diff --git a/tests/baselines/reference/functionExpressionReturningItself.errors.txt b/tests/baselines/reference/functionExpressionReturningItself.errors.txt
deleted file mode 100644
index 2cfefecf9eb..00000000000
--- a/tests/baselines/reference/functionExpressionReturningItself.errors.txt
+++ /dev/null
@@ -1,4 +0,0 @@
-==== tests/cases/compiler/functionExpressionReturningItself.ts (1 errors) ====
-    var x = function somefn() { return somefn; };
-        ~
-!!! Exported variable 'x' has or is using private name 'somefn'.
\ No newline at end of file
diff --git a/tests/baselines/reference/functionExpressionReturningItself.js b/tests/baselines/reference/functionExpressionReturningItself.js
index f80e9325871..8553d2da867 100644
--- a/tests/baselines/reference/functionExpressionReturningItself.js
+++ b/tests/baselines/reference/functionExpressionReturningItself.js
@@ -5,3 +5,7 @@ var x = function somefn() { return somefn; };
 var x = function somefn() {
     return somefn;
 };
+
+
+//// [functionExpressionReturningItself.d.ts]
+declare var x: () => any;
diff --git a/tests/baselines/reference/functionReturningItself.js b/tests/baselines/reference/functionReturningItself.js
index e50215a524b..7d161241899 100644
--- a/tests/baselines/reference/functionReturningItself.js
+++ b/tests/baselines/reference/functionReturningItself.js
@@ -10,4 +10,4 @@ function somefn() {
 
 
 //// [functionReturningItself.d.ts]
-declare function somefn(): () => typeof somefn;
+declare function somefn(): typeof somefn;
diff --git a/tests/baselines/reference/internalAliasFunction.js b/tests/baselines/reference/internalAliasFunction.js
index e46526f1f8b..3930c6cb801 100644
--- a/tests/baselines/reference/internalAliasFunction.js
+++ b/tests/baselines/reference/internalAliasFunction.js
@@ -33,6 +33,7 @@ declare module a {
     function foo(x: number): number;
 }
 declare module c {
+    import b = a.foo;
     var bVal: number;
-    var bVal2: (x: number) => number;
+    var bVal2: typeof b;
 }
diff --git a/tests/baselines/reference/internalAliasFunctionInsideLocalModuleWithExport.js b/tests/baselines/reference/internalAliasFunctionInsideLocalModuleWithExport.js
index a0a61453735..eb758b913e6 100644
--- a/tests/baselines/reference/internalAliasFunctionInsideLocalModuleWithExport.js
+++ b/tests/baselines/reference/internalAliasFunctionInsideLocalModuleWithExport.js
@@ -35,5 +35,5 @@ export declare module a {
 export declare module c {
     export import b = a.foo;
     var bVal: number;
-    var bVal2: (x: number) => number;
+    var bVal2: typeof b;
 }
diff --git a/tests/baselines/reference/internalAliasFunctionInsideLocalModuleWithoutExport.js b/tests/baselines/reference/internalAliasFunctionInsideLocalModuleWithoutExport.js
index 113396205ba..0423a587e84 100644
--- a/tests/baselines/reference/internalAliasFunctionInsideLocalModuleWithoutExport.js
+++ b/tests/baselines/reference/internalAliasFunctionInsideLocalModuleWithoutExport.js
@@ -33,5 +33,6 @@ export declare module a {
     function foo(x: number): number;
 }
 export declare module c {
-    var bVal2: (x: number) => number;
+    import b = a.foo;
+    var bVal2: typeof b;
 }
diff --git a/tests/baselines/reference/internalAliasFunctionInsideTopLevelModuleWithExport.js b/tests/baselines/reference/internalAliasFunctionInsideTopLevelModuleWithExport.js
index 1213bbbbe26..7fe09d1e02b 100644
--- a/tests/baselines/reference/internalAliasFunctionInsideTopLevelModuleWithExport.js
+++ b/tests/baselines/reference/internalAliasFunctionInsideTopLevelModuleWithExport.js
@@ -31,4 +31,4 @@ export declare module a {
 }
 export import b = a.foo;
 export declare var bVal: number;
-export declare var bVal2: (x: number) => number;
+export declare var bVal2: typeof b;
diff --git a/tests/baselines/reference/internalAliasFunctionInsideTopLevelModuleWithoutExport.js b/tests/baselines/reference/internalAliasFunctionInsideTopLevelModuleWithoutExport.js
index af546a20b5b..c049bfcf858 100644
--- a/tests/baselines/reference/internalAliasFunctionInsideTopLevelModuleWithoutExport.js
+++ b/tests/baselines/reference/internalAliasFunctionInsideTopLevelModuleWithoutExport.js
@@ -27,5 +27,6 @@ exports.bVal2 = b;
 export declare module a {
     function foo(x: number): number;
 }
+import b = a.foo;
 export declare var bVal: number;
-export declare var bVal2: (x: number) => number;
+export declare var bVal2: typeof b;
diff --git a/tests/baselines/reference/privacyCheckTypeOfFunction.errors.txt b/tests/baselines/reference/privacyCheckTypeOfFunction.errors.txt
new file mode 100644
index 00000000000..50b9dc0242b
--- /dev/null
+++ b/tests/baselines/reference/privacyCheckTypeOfFunction.errors.txt
@@ -0,0 +1,10 @@
+==== tests/cases/compiler/privacyCheckTypeOfFunction.ts (2 errors) ====
+    function foo() {
+    }
+    export var x: typeof foo;
+               ~
+!!! Exported variable 'x' has or is using private name 'foo'.
+    export var b = foo;
+               ~
+!!! Exported variable 'b' has or is using private name 'foo'.
+    
\ No newline at end of file
diff --git a/tests/baselines/reference/privacyCheckTypeOfFunction.js b/tests/baselines/reference/privacyCheckTypeOfFunction.js
index 04063c62991..757416c691b 100644
--- a/tests/baselines/reference/privacyCheckTypeOfFunction.js
+++ b/tests/baselines/reference/privacyCheckTypeOfFunction.js
@@ -10,8 +10,3 @@ function foo() {
 }
 exports.x;
 exports.b = foo;
-
-
-//// [privacyCheckTypeOfFunction.d.ts]
-export declare var x: () => void;
-export declare var b: () => void;
diff --git a/tests/cases/compiler/declarationEmit_nameConflicts.ts b/tests/cases/compiler/declarationEmit_nameConflicts.ts
index 49218d2ef1e..66eb732ddae 100644
--- a/tests/cases/compiler/declarationEmit_nameConflicts.ts
+++ b/tests/cases/compiler/declarationEmit_nameConflicts.ts
@@ -28,7 +28,6 @@ export module M.P {
         export interface I { }
     }
     export import im = M.P.f;
-    // Bug 887180: Invalid .d.ts when an aliased entity is referenced, and a different entity is closer in scope
     export var a = M.a; // emitted incorrectly as typeof f
     export var b = M.b; // ok
     export var c = M.c; // ok
diff --git a/tests/cases/compiler/declarationEmit_nameConflicts2.ts b/tests/cases/compiler/declarationEmit_nameConflicts2.ts
index d7dd5134e96..f0112fa9501 100644
--- a/tests/cases/compiler/declarationEmit_nameConflicts2.ts
+++ b/tests/cases/compiler/declarationEmit_nameConflicts2.ts
@@ -9,7 +9,6 @@ module X.Y.base {
 }
 
 module X.Y.base.Z {
-    // Bug 887180
     export var f = X.Y.base.f; // Should be base.f
     export var C = X.Y.base.C; // Should be base.C
     export var M = X.Y.base.M; // Should be base.M