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BibTeX and LyX
BibTeX is a standard program in all LaTeX-distributions for managing citations. The citations are stored in a so called BibTeX-database file (*.bib). Here is an example database file to see how it looks.
Using BibTeX has the advantage that you don't need to type the citations in every document. LyX allows you to choose citation references from the database and only the referenced citations will be printed in the reference list of the document.
A BibTeX-database file is included to a LyX-document with the menu
To administrate BibTeX-database files you need an editor, or more comfortable, a so called BibTeX-manager. Here are some links to BibTeX-managers:
Lastly, there are plugins that can interface with bibliographic managers to input cites into LyX. For example, Firefox add-on Zotero, a powerful bibliographic manager with online backup capability, has an add-on called Lyz that allows it to create bibliographies and reference pages in LyX.