If you rub a finger up along his trace line ( from twist to nape of neck), can you see a scurffy line?
If so, your dog may have Cheyletiella...see here .....
http://en.wikipedia.org/wiki/CheyletiellaA vet can skin scrape to diagnose.
Very common parasitic condition which is not eradicated by spot on treatments very effectively.
Spray-on Frontline followed by regular baths with a shampoo called SporalD are IMO the only way to control this pest once it has establishe itself in your home.
Wash all bedding at 60C to kill larvae.