Hello and thanks for researching this very important question!
Cats (like dogs and people!) can develop a number of allergic conditions as they (and their immune system) age.
Cats can be allergic to: molds, pollens, food ingredients, and flea bites. Just a minimal contact (say, one flea bite) is enough to start a whole-body reaction that can be long-lasting (up to three weeks in the case of a flea bite!).
Allergies can be expressed as licking, scratching, fur pulling, sensitive (even red) skin, thin and brittle hair coat, a bumpy or pebbly feel to the skin, and even progress to crusty, oozing sores. Steroids (long-lasting injections or tablets given only as needed), antibiotics and antihistamines are regularly used to help these cats.
Your vet can help you decide what exactly is going on. Chronic licking and fur pulling can also be an expression of generalized anxiety problems that can be addressed pretty effectively these days.
Here is a link to quite a number of other articles about allergies in cats and their treatments:
http://www.petplace.com/search.aspx?q=allergy&c=2&x=4&y=14
Here is an article about anxiety problems in cats:
http://www.petplace.com/cats/compulsive-behavior/page1.aspx
Having this problem evaluated early can make a big difference to you and this dear pet in the long run!
If you need additional support at this time, please click "Reply".
Your concern has touched me--if you have follow-up questions, or need to clarify your case, please let me know right away! Your "Accept" helps me reach out to others!