Estimation of Hedonic Prices for Co-operative Flats in the City of Umeå with Spatial Autoregressive GMM∗

In this paper we estimate hedonic prices for co-operative flats in the city of Umeå, Sweden, during 1998 and 1999. Structural and neighbourhood characteristics together with accessibility measures are used as attributes in the hedonic price function. Since there are indications of spatial depen-dence Ordinary Least Squares estimation is inappropriate. Instead Spatial Autoregressive GMM estimation is used. Two attractive nodes, although with different functions, are found in the city. Thus there are signs sup-porting the view that Umeå has developed into a multi-nodal structure for property values