Why do different countries at different historical periods employ varying tactics in response to non-state terrorism and insurgency? This study explores empirically alternative explanations for this question during the last four decades. Using an integrative theoretical approach, it interlaces traditional actor-oriented international relations explanations that emphasize rational decision making and power relations with more sociological and cultural approaches, which emphasize ideas, norms, legitimacy and cultural toolkits. A two-step inquiry is conducted to explore these approaches. First, the relationship between terrorism and state response is examined through a series of quantitative regression analyses, combining pooled time-series cross-sectional analyses and event history analyses. Second, the research takes a more sensitive in-depth look at the same questions using a comparative historical investigation of three prominent ongoing terrorist campaigns in Turkey, Israel, and India. This project is the first to examine the determinants of states' counterterrorist policies applying a comprehensive theoretical framework to a variety of counterterrorist measures on a cross-national level. It provides insights into the processes of states' decision making and the various factors that influence policy makers and show that these are often affected by considerations that are not strictly utility-driven. In addition, the study has important public policy implications. It provides decision makers and security forces with important information about the effectiveness of various counterterrorist measures, equipping them with more efficient tools in their fight against domestic and international terrorism.