This problem is termed exfoliative cheilitis and is futher classified as factitious cheilitis or idiopathic cheilitis. Based on my review of the medical literature, the majority of the cases that have shown resolution, resolved when the psychological component was treated (i.e. with an anxiolytic). These cases were termed factitious cheilitis. The rest were termed idiopathic (meaning unknown cause). A few of these idiopathic cases resolved with a topical antifungal.
Someone mentioned previously resolution with the use of vitamin A. Vitamin A in too high doses might induce a cheilitis; but I did run across this listing on a literature search and was wondering if anyone could get access to this article. A large medical school library should cary the journal. Hopefully its in english.
Topical vitamin A in exfoliative cheilitis
Indian Journal of Dermatology Venereology and Leprology. 1996 July-Aug; 62(4): 268-9