Newbie, MATLAB, {-indexing incompatibility

[F L]

Hey,

I found nice MATLAB-code and installed GNU Octave 2.1.50 (for Windows). 
'--traditional' seems to be on by default.

Some of the code runs. Some doesn't. Here is an offending piece of 
MATLAB-code:

Vname = [];
lnames = [];

l=1;
for i=1:neqs;
for m=1:nlag;
   Vname{l}  = str2mat(['variable ',num2str(i)]);
   lnames{l} = str2mat(['  lag',num2str(m)]);
l = l+1;
end;
end;


The first innermost line Vname{l}  = str2mat(['variable ',num2str(i)]);
in for-loops contains error according to Octave, but it is supposed to run 
in MATLAB.
I don't know MATLAB-language. What's the left side of assignment supposed to 
do and how I can circumvent this problem?

error: matrix cannot be indexed with {
error: assignment failed, or no method for `matrix = string'
error: evaluating assignment expression near line 93, column 14
error: evaluating for command near line 92, column 1
error: evaluating for command near line 91, column 1
error: evaluating if command near line 81, column 1
error: evaluating switch command near line 47, column 1

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