[Tex/LaTex] How to creat hanging indent reference list in Classicthesis LyX version

bibliographiesclassicthesisindentationlyx

29 Oct 2016 Update: I have provided a complete answer to this question, as well as how to cross-reference specific citations in the maintext in another question How to cross-reference an ERT in LyX?.

I already have a completed hanging-indent reference list in Word version, which I want to reproduce in LyX. I want common hanging indent without [number] in front (this is an example from the APA website):
enter image description here

An expert suggested me to use labeling environment, but (i) the first letter of the label is not a capital letter; (ii) the space between label letters are slightly wider than that of the subsequent content.

enter image description here

enter image description here

Then, I tried under standard LyX document class instead of Classicthesis, although both issues (i) (ii) vanish, I noticed a new issue (iii)– if the surname is shorter (quite common) than label width, there is a GAP between the label and the subsequent contents:

enter image description here

I saw someone suggesting using the "verse" environment on another website, but I cannot find it. (1) Will it work and how it works? (2) If it works, how to load it to the Classicthesis LyX template?

Urgent help is needed as my thesis in due in less than a week (31st). Any other alternative suggestions are much appreciated too!

UPDATE1

Another expert suggested using description environment. I get the following outcome in Classicthesis LyX:
enter image description here

The code:\begin{description}
\item [{Lorem}] ipsum at nusquam appellantur his, ut eos erant homero concludaturque.
Albucius appellantur deterruisset id eam, vivendum partiendo dissentiet
ei ius. Vis melius facilisis ea, sea id convenire referrentur, takimata
adolescens ex duo. Ei harum argumentum per. Eam vidit exerci appetere
ad, ut vel zzril intellegam interpretaris. \marginpar{More dummy text.}
\end{description}

and in Standard document class, issue (iii) is much alleviated but issue (ii), that is, the space between label letters, as well as a new issue arise (iv)–I want to remove the boldness in description

enter image description here

The code: 

\begin{description}
\item [{Surname,}] Surname, Surname, Surname, A. 2005. This is a bibliography.
This is a bibliography. This is a bibliography. This is a bibliography.
This is a bibliography. This is a bibliography. 
\item [{Sur,}] Sur, Sur, Sur, A. 2005. This is a bibliography. This is
a bibliography. This is a bibliography. This is a bibliography. This
is a bibliography. This is a bibliography. 
\end{description}

I still prefer solution to fix it in Classicthesis template. So any alternative solutions are still welcome.

UPDATE2

By using Ctrl+L and inserting the relevant codes from "Answer 1" (\scshape is removed based on the subsequent comment) into template, I have the following result:

enter image description here

Issue 1: the description label's first letter is not capital; Issue 2: the distance between letters are wider in the description label. How to achieve the same style as in the first picture (APA reference style)?

UPDATE3

Based on Answer 2, I have the following output:

enter image description here

The only issue is how to indent the standard amount of 0.5 inches (1.27cm)?
Another personal issue is that when I load "hanging" module, the parent document has unsaved changes due to TEX over-capacity, which has a limit of 5000. Any one can fix this issue?

NOTE: I searched HELP documents in LyX, but could not find "hanging" at all, despite that it indeed has an optional "hanging" module.

Best Answer

Rather than abuse the description environment into doing your bidding, you could just use an environment designed to 'hang' your paragraphs. For example:

\documentclass{report}
\usepackage{classicthesis}
\usepackage{hanging}
\usepackage{setspace}
% If global doublespacing:
% \doublespacing
% If only in the References environment:
\usepackage{etoolbox}
\AtBeginEnvironment{hangparas}{\doublespacing}
\AfterEndEnvironment{hangparas}{\addvspace{0.67\baselineskip}}

\begin{document}

This paragraph is only doublespaced if you use the etoolbox method to
activate double-spacing within the \verb|hangparas| environment. If
you simply use the \verb|\doublespacing| command, this paragraph will
also be double-spaced.

\begin{hangparas}{1cm}{1}% `1cm` sets the hang amount; `1` says to hang lines after the first line in each paragraph
  Holosko, M. J. (2006). \emph{Primer for Critiquiing Social Research:
    A Student Guide.} Belmont, CA: Brooks/Cole.

  Shear, K., Frank, E., Houck, P. R., \& Reynolds, C. F. (2005).
  Treatment of complicated grief: A randomized controlled
  trial. \emph{The Journal of American Medical Association},
  \emph{293}(21), 2601--2608.
\end{hangparas}


This paragraph is only doublespaced if you use the etoolbox method to
activate double-spacing within the \verb|hangparas| environment. If
you simply use the \verb|\doublespacing| command, this paragraph will
also be double-spaced.

\end{document}
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