PostgreSQL Function – How to Refer to Function Parameters Inside a Postgres Function

Your syntax is twisted in several ways. If the return type of function A is defined as RETURNS TABLE (id int, address text), it could work like this:

Select A.address, B.name 
FROM   f_a() A
JOIN   B USING (id);

Aside: While your identifiers look alright for the purpose, I strictly use legal, lower case identifiers to avoid complications.

You have an unresolved naming conflict.

You must be using an old version of Postgres without declaring it. Or you are operating with non-default configuration setting.

Here you declare a variable named measurement_id:

DECLARE
    measurement_id              INTEGER;

It's a folly to use ambiguous variable names to begin with. If you do it anyway, you must know what you are doing. I make it a habbit to prepend variable names with an underscore unlike column names, like _measurement_id.

The later SELECT statement is ambiguous:

ORDER BY measurement_id

This would raise an error message in modern PostgreSQL with default configuration. Per the documentation:

By default, PL/pgSQL will report an error if a name in a SQL statement could refer to either a variable or a table column.

And:

To change this behavior on a system-wide basis, set the configuration parameter plpgsql.variable_conflict to one of error, use_variable, or use_column (where error is the factory default). This parameter affects subsequent compilations of statements in PL/pgSQL functions, but not statements already compiled in the current session. Because changing this setting can cause unexpected changes in the behavior of PL/pgSQL functions, it can only be changed by a superuser.

In Postgres older than 9.0 this would be resolved to mean the variable. Per the documentation

In such cases you can specify that PL/pgSQL should resolve ambiguous references as the variable (which is compatible with PL/pgSQL's behavior before PostgreSQL 9.0)

Bold emphasis mine.
This would result in arbitrary results, since the sort order is now undetermined.

Audited Function

CREATE OR REPLACE FUNCTION insaft_function()
   RETURNS TRIGGER AS
$func$
DECLARE
   _measurement_id          integer;
   _file_header_index_start integer := TG_ARGV[0]::int;
   _file_header_index_end   integer := TG_ARGV[1]::int; 
BEGIN     

   SELECT a.measurement_id   INTO _measurement_id
   FROM   measurements a
   ORDER  BY a.measurement_id DESC  -- you had ambiguity here!
   LIMIT  1;

   IF TG_OP = 'INSERT' THEN  -- noise if only used in AFTER INSERT trigger
      INSERT INTO file_headers (measurement_id, file_header_index_start
                                              , file_header_index_end)
      VALUES (_measurement_id, _file_header_index_start, _file_header_index_end); 
   END IF;

   RETURN NULL; -- result is ignored since this is an AFTER trigger
END
$func$ LANGUAGE plpgsql;

Note how I named it insaft_function(), since this is only to be used in an AFTER INSERT trigger.

Trigger:

CREATE TRIGGER insaft_measurement_ids
AFTER INSERT ON measurements
FOR EACH ROW EXECUTE PROCEDURE insaft_function(1, 666);

But for the provided setup, you can radically simplify the function:

CREATE OR REPLACE FUNCTION insaft_function()
   RETURNS TRIGGER AS
$func$
BEGIN     
   INSERT INTO file_headers (measurement_id, file_header_index_start
                                           , file_header_index_end)
   VALUES (NEW.measurement_id, TG_ARGV[0]::int, TG_ARGV[1]::int);

   RETURN NULL;  -- result ignored since this is an AFTER trigger
END
$func$ LANGUAGE plpgsql;